Connecticut Attorneys Provide Solid Advice Regarding Chapter 13 Bankruptcy
Bankruptcy Attorneys Put Decades of Experience to Work for Connecticut Debtors
Chapter 13 bankruptcy allows a debtor with consistent income to pay some or all of what he owes his creditors over three to five years, depending upon the amount of debt and income. In return for sticking to his repayment plan, a debtor may be allowed to keep his valuable non-exempt property.
Eligibility
Only debtors with regular income are eligible to file for Chapter 13 bankruptcy. Regular income includes wages or commission earned through employment, but not overtime, bonuses, occasional income, or child support payments.
Chapter 13 Bankruptcy Process
When a debtor files for Chapter 13 bankruptcy, he typically proposes a three to five-year repayment plan that the bankruptcy court must approve. The repayment plan proposes to pay off all or part of the debt with future income.
If the filer adheres to the terms of the repayment plan, all his remaining dischargeable debt will be erased at the end of the plan. The amount that the debtor will be required to repay is determined by various factors, including:
- The debtor’s monthly income
- The amount of the debtor’s income that is considered disposable, or the difference between monthly earnings and the amount reasonably expended for a family’s maintenance and support
- How much money is needed to cover administrative expenses, cure obligations, and meet the best interests of creditors test
What Chapter 13 Bankruptcy Can Do For You
If successfully completed, a Chapter 13 bankruptcy can:
- Prevent a home foreclosure
- Help catch up missed car or mortgage payments
- Pay back taxes
- Stop interest from accruing on tax debt
- Retain valuable non-exempt property
Contact Our Connecticut Chapter 13 Bankruptcy Attorneys Today
If you don’t qualify for Chapter 7 bankruptcy and are considering Chapter 13, get all the facts from Lisa Gustafson. Contact our firm online, or call 203-938-0119 to set up your free initial consultation today.