You may be surprised to learn that hundreds of thousands of people file for bankruptcy each year. According to the Administrative Office of the U.S. Courts, 418,724 bankruptcy filings were made between June 2022 and June 2023. If you're among those filing for bankruptcy as an individual, you'll want to contact bankruptcy attorneys at law to file for Chapter 13 bankruptcy. Keep reading to learn more about this filing status.

It Lasts Between Three and Five Years

When you declare Chapter 13 bankruptcy, you are attempting to get creditors to stop aiming to collect from you. As a result, you'll have to adhere to a court-ordered repayment plan. The length of the plan depends on how much you make. If it's less than the state median income, you'll have three years. If it's more, then you'll pay for five years, though you'll never have to pay for more than five years. You should have bankruptcy attorneys at law by your side to make sure you can navigate this issue.

It Differs From Chapter 7

When you apply for Chapter 7 bankruptcy, you're trying to get all your debts discarded, rather than paying it back in Chapter 13 bankruptcy. One benefit of paying your debts back under the Chapter 13 filing status is that you can possibly save your home from being foreclosed on. This is because your debts are being rescheduled rather than being eliminated completely.

You Won’t Incur Any New Debt

Even when you're up to your waist in debt, it can be tempting to continue taking on more. However, you're going to be working with a trustee to pay back your debts and you'll have to talk to them before you try incurring new debt. This is because if you add to your existing debt, then you could jeopardize your ability to pay it off. You'll have to think and plan carefully with your trustee beforehand.

You might be tempted to save money by trying to file for bankruptcy yourself. However, it's best to rely on bankruptcy attorneys at law to help make sure everything is done correctly. If you're in search of the right attorney for your case, you've come to the right place. Contact us today to get started with a free consultation! We offer $0 down options for our legal services and accept same-day and walk-in appointments.