Reorganize Debt and Payment Option Under Chapter 13 Bankruptcy

bankruptcy and chapter 13What is Chapter 13 Bankruptcy?

Another name for Chapter 13 is a wage earner’s bankruptcy. It permits people with a steady income to create a plan to pay off their debts in full or in part. A debt repayment plan is submitted to creditors under this chapter that proposes monthly payments over three to five years.

If a debtor’s current monthly income is lower than the state average, the period required by law will most likely be three years. (1) If the debtor’s present monthly revenue is higher than the state average, the statutory period is generally five years. During this time, collection attempts may not be made against the debtor or his/her assets by creditors.

Who is it for?

Chapter 13 is available to individuals with a regular income who have:

If you or someone you know is seeking consultation, it’s important to talk to a bankruptcy attorney in Taylorsville today, to discuss your situation.

Reorganize Debt – what does that consist of

Chapter 13 can assist you in catching up on mortgage payments and preserving your property from foreclosure. Chapter 13 bankruptcy enables you to make up missed payments (arrears) throughout your plan if you are behind on your mortgage or facing foreclosure. You’ll need to continue making your regular mortgage payments throughout this period.

You may use your Chapter 13 bankruptcy to assist you to pay off other obligations such as IRS taxes, back wages owed to you, or alimony and child support debts that have gone past due dates.

Alta Legal offers a free consultation to help you understand your best options for reorganizing your debt. Our knowledgeable Taylorsville bankruptcy attorneys will work with you to tailor a plan that fits your unique situation and financial goals. Call one of our Chapter 13 bankruptcy lawyers in Taylorsville UT today to schedule your free consultation.

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