Understanding the Chapter 13 Bankruptcy Process in Long Island
If you’re struggling with debt and looking for a way to get back on track financially, Chapter 13 bankruptcy may be the solution for you. But what exactly is Chapter 13 bankruptcy, and how does the process work? Here’s what you need to know:
- Eligibility: In order to file for Chapter 13 bankruptcy, you must have a regular income and your unsecured debts must be less than $419,275 and secured debts less than $1,257,850. You must also complete credit counseling before filing.
- Filing: To file for Chapter 13 bankruptcy, you will need to complete a petition and provide detailed financial information, including a list of your creditors, income, expenses, and assets. You will also need to propose a repayment plan.
- Repayment Plan: Your repayment plan will outline how you will pay back your debts over a three to five year period. You will make monthly payments to a trustee, who will distribute the funds to your creditors according to the plan.
- Confirmation: Once you have filed your petition and proposed a repayment plan, a meeting of creditors will be held. If your plan is feasible and meets the requirements of the bankruptcy code, it will be confirmed by the court.
- Completion: Once you have successfully completed your repayment plan, any remaining unsecured debts will be discharged. You will then be able to move forward with a fresh start financially.
If you’re considering filing for Chapter 13 bankruptcy, it’s important to work with an experienced bankruptcy attorney who can guide you through the process and ensure that your rights are protected. At Pryor & Mandelup LLP, we have helped many clients in Long Island and beyond get back on track financially through bankruptcy. Contact us today to schedule a consultation and learn more about your options.
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