A Debt Repayment Plan That Works
Chapter 13 bankruptcy is a repayment plan that consolidates your debts into one payment to the Chapter 13 trustee. Filing Chapter 13 bankruptcy will allow you to:
- Protect your home from foreclosure or your car from repossession
- Strip second mortgages from your home if the current appraised value is less than the first mortgage
- Repay a small percentage of unsecured debt such as credit card bills, hospital bills and payday loans (if you can't wipe out these debts completely)
- Avoid penalties and interest on debts you owe
At UHLLAW, PC, we offer a free initial attorney consultation to discuss your financial situation and determine if filing Chapter 13 bankruptcy will solve your debt problems. We have offices in Worcester, Fitchburg, Boston, Orange and New Bedford in Massachusetts.
How Does Chapter 13 Bankruptcy Repayment Plan Work?
When you file Chapter 13 bankruptcy, you are required to pay 100 percent of the secured debt you owe. Secured debt is debt that is backed by property, such as your mortgage arrearages and past-due car payments.
Unsecured debt (such as credit card bills, medical bills and payday loans) do not have to be repaid in full. Instead, you will pay a percentage of these debts. The repayment percentage will be determined by your income, living expenses, the number of family members in your home, and the type and amount of debt you have. Attorney Christopher Uhl's goal is to keep the repayment percentage as low as possible.
How Long Do I Have to Pay Off Debts?
Debts must be paid back over a three- to five-year period.
How is Chapter 13 Bankruptcy Different from Debt Counseling or Debt Negotiation?
Debt counseling and debt negotiation will only work if all of your creditors agree. Some creditors (for example, Capital One) refuse to negotiate credit card debt. Once you file Chapter 13 bankruptcy, creditors don't have a choice.
Free Bankruptcy Lawyer Consultation
Come with questions and leave with answers about how Chapter 13 bankruptcy can eliminate your debt and give you a fresh financial start. Call 888-219-3993 or fill out our contact form to schedule a free initial consultation with a bankruptcy lawyer.
Learn more about Chapter 13 bankruptcy.
