Chapter 13 bankruptcy may be a suitable option for an individual who is earning a regular income and is looking for a way to better manage their debt. An individual who qualifies for Chapter 13 bankruptcy is able to repay their debt through a payment plan that lasts between three to five years, according to the United States Courts. Those who earn a monthly income that is less than the “applicable state median” will usually be given a three-year payment plan. In the event a debtor’s income is more than the “applicable state median,” they will usually be given a plan that lasts for five years
When the right circumstances exist, the court may approve a longer payment plan for certain debtors, however, the court will not approve a payment plan that lasts longer than five years.
What are some advantages of filing for Chapter 13 bankruptcy?
When a debtor is protected by Chapter 13 bankruptcy, their creditors cannot attempt to collect a debt that is owed. Some other advantages of filing for Chapter 13 bankruptcy include:
- A debtor can maintain ownership over their home.
One of the biggest concerns individuals who are considering filing for bankruptcy have is that they could potentially lose their homes. Fortunately, Chapter 13 bankruptcy doesn’t require that an individual resort to liquidation to repay their debt. In fact, Chapter 13 bankruptcy can even stop the foreclosure proceedings “and may cure delinquent mortgage payments over time.”
- Chapter 13 bankruptcy is similar to a consolidation loan.
Rather than having to make payments to multiple creditors, a debtor will make a payment to a chapter 13 trustee who is then responsible for distributing the payments to creditors. This prevents a debtor from having to make any direct contact with their creditors, according to the United States Courts.
- Most individuals qualify to file for Chapter 13 bankruptcy, even those who are self-employed or operate an unincorporated business.
If an individual’s unsecured debts are less than $394,725 and secured debts are less than $1,184,200, they may qualify to file for Chapter 13 bankruptcy.
Living life with a substantial amount of unpaid debt can be stressful and overwhelming, especially if creditors are making every effort to collect the money they are owed. Thankfully, a debtor in Tulsa who is unable to gain control of their debt has different options available to them, including filing for bankruptcy. If an individual is considering filing for bankruptcy, they are encouraged to first consult with a Tulsa, OK bankruptcy lawyer to be sure they understand the entire process they will be required to go through.
Anyone who needs more information on filing for Chapter 13 bankruptcy in Tulsa, OK, or is ready to initiate the process can contact the Henson Law Firm, PLLC. The Tulsa, OK bankruptcy lawyers at the Henson Law Firm, PLLC have a firm understanding of bankruptcy law and is eager to help anyone interested in filing for bankruptcy better understand the process.
The Henson Law Firm, PLLC is located at:
601 S. Boulder, Suite 600
Tulsa, OK 74119
*We are a debt relief law firm in Tulsa, Oklahoma.
*We help people file for bankruptcy relief under the Bankruptcy Code.