For many, the idea of declaring bankruptcy to achieve debt relief is an overwhelming prospect. Not only does this leave a lasting impact on your credit score, but it may also take considerable time to finalize. However, it is an ideal option for those seemingly drowning in debt, as it allows you the opportunity for a financial fresh start. If you’ve explored your options and decided that filing with the help of a Memphis, TN Chapter 13 bankruptcy lawyer is in your best interest, understanding how long you can expect your repayment plan to take is critical. Luckily, the following blog explores this process.
What Is Chapter 13 Bankruptcy, and How Long Will My Repayment Plan Be?
Chapter 13 bankruptcy is a type of filing that is limited to consumers. Though less common than Chapter 7, this form of bankruptcy is the second most popular option used to file personal bankruptcy. This process is unfortunately more complex than Chapter 7, as Chapter 13 requires the creation of a repayment plan.
When you are exploring your options, Chapter 7 may seem like the best option. This is because it can be a relatively quick process, typically ending in six months. However, you must meet income requirements to utilize this option. As such, many individuals end up qualifying for Chapter 13.
Chapter 13 involves the reorganization of debts through a monthly repayment plan. However, this plan will take a considerable of time to finish based on your income and how much time you need to repay your debts. Typically, Chapter 13 bankruptcy repayment plans take anywhere from three to five years to finalize. When your payments are complete, however, the remainder of your qualified debt will be erased. Additionally, a Chapter 13 filing will remain on your credit report for seven years.
How Do I Declare?
If you’re ready to declare bankruptcy, it’s important to understand the steps involved in this process. Generally, the first and most important step is to consult an experienced attorney. Though having an attorney isn’t a legal requirement, it’s in your best interest to obtain legal representation if you want a favorable outcome. This is because studies show that you are significantly less likely to get a bankruptcy discharge if you represent yourself instead of hiring a lawyer.
Your attorney can help you with the declaration process, which often involves taking credit counseling courses and filing a bankruptcy petition with the court. Again, connecting with an attorney for this process is critical as you’ll find that this paperwork can be incredibly complex.
At the Arnold Law Firm, our dedicated team understands how important receiving a fresh start is for you and your family. That’s why we’re proud to represent the people of Tennessee. If you’re ready to start this process, we can help. Contact us today to learn more about these matters.
