Chapter 13 Bankruptcy: Your Bankruptcy Payment Plan
There are two important messages that the attorneys at Skrupa Law Office, LLC, often tell our clients about any bankruptcy. The first is that is that filing for bankruptcy immediately stops all creditor harassment, creditor phone calls, lawsuits and wage garnishment. The second is that very few people have to give up their possessions as a result of bankruptcy. Bankruptcy can stop repossessions from happening. We can't emphasize these points enough.
You cannot always choose which kind of bankruptcy you should to go for. Many people do not qualify for chapter 7 bankruptcy, but qualify for chapter 13 instead. Chapter 13 is the type of bankruptcy that involves debt consolidation. It is reserved for people who have enough disposable future income to pay some of their debts back.
In the Chapter 13 bankruptcy, your "disposable income" will be paid in one lump sum to cover your debts over the next three to five years. After that period of time, no matter how much of your debts you've actually paid, your debts are wiped clean.
But What Counts as "Disposable Income"?
Here's where a good, experienced lawyer from Skrupa Law Office, LLC, can use the law to get you a good deal. Our attorneys and the team at Skrupa Law Office are extremely effective at getting all sorts of daily expenses classified as "non-disposable," meaning you won't have to give them up as part of a bankruptcy agreement. Sometimes people who owe $50,000 in house payments and face foreclosure only end up paying $7,000 over three years, at which point they get a fresh new start. Sometimes people who have debt defaults on car payments only have to pay blue book value of their car, not what they actually owe.
Of course, Chapter 13 bankruptcy is not all wine and roses, and it can hurt your credit rating. If you're not in serious financial trouble, you shouldn't consider it. But few people can really judge what constitutes "serious financial trouble" and what doesn't. That's where our attorneys come in. With thousands of bankruptcy proceedings under their belt, our lawyers and support staff can tell you quickly — in simple terms — whether bankruptcy is right for you.
Call Us Today for an Appointment
To find out more, talk with an attorney at Skrupa Law Office, LLC. Contact us by calling our Omaha law office at (402) 571-2900 or our Lincoln law office at (402) 464-3311. Appointments are free and confidential.
