Are you wondering how long Chapter 13 lasts in Auburn, NY? If so, you are probably considering Chapter 13 bankruptcy as an option for addressing debt and getting a fresh financial start.
At Grady BK, PLLC, we strive to provide our clients with straightforward legal guidance to help them address their financial situation. We will work with you one-on-one to help you find the best bankruptcy option and navigate what comes next. In this article, we will be discussing how long Chapter 13 lasts in Auburn, NY, and what happens after your plan is discharged.
Standard Length of a Chapter 13 Plan
Are you wondering how long Chapter 13 lasts in Auburn, NY? If so, the Chapter 13 discharge timeline in NY can range between 3 to 5 years. Whether or not you have a three year versus five year Chapter 13 plan will be dependent on your income and the amount of debt that you have accumulated.
Although your plan will be completely dependent on your unique situation, you can estimate the timeline depending on your income. For example, those in Auburn, NY, who earned less than the median yearly income will usually have a shorter repayment plan. Whereas if you earn more than New York’s median income, your plan will most likely be closer to five years.
Keep in mind that the end of Chapter 13 bankruptcy timeline is also dependent on whether or not you have short-term debt or long-term debt.
What Can Shorten or Lengthen Your Plan?
Now that you know the average duration of a Chapter 13 plan, you may be wondering if this can be adjusted. Again, this is very dependent on your unique situation and the type of plan you were given.
For those who have received a five-year repayment plan, this cannot be adjusted. Chapter 13 plans cannot go beyond five years, and if you receive a five-year plan, this cannot be shortened.
On the other hand, if you receive a three-year plan, you may qualify for having it extended so that your monthly payments are smaller.
Here are some examples of other scenarios that can impact the duration of your Chapter 13 plan:
- You have missed payments.
- You have requested that your Chapter 13 plan be dismissed.
- You have stopped making payments, leading to the court dismissing your case.
- You have asked that your plan be modified to reflect changes in financial circumstances.
What Happens When Your Chapter 13 Plan Ends?
Once you have completed your three or five-year Chapter 13 repayment plan, any remaining eligible debts will be discharged. So, you will be current with secured debt, such as a mortgage or car loan, and you will not have any more unsecured debt.
Your bankruptcy will also be marked as discharged on your credit report. By the time the bankruptcy repayment plan is over you will have already rebuilt your credit as you will start rebuilding within a few months after the bankruptcy is filed. We will give you information on how to do that.
The best way to continue your financial recovery journey is to remain current with your secured payments (mortgage, car, etc.). If you are financially secure enough, you could also consider other credit building options, such as taking out a small loan or a credit card. You do not want to wait to start rebuilding your credit until after the bankruptcy is filed.
Tips For Completing Chapter 13 Plan Successfully
Now that you know exactly how long a Chapter 13 plan can last, you may be worried about maintaining this plan long-term. Although maintaining a strict 3 to 5 year repayment plan can seem intimidating, it can be done.
Here are some actionable tips you can use when starting your Chapter 13 repayment plan to help you make it to the end successfully:
- Accurate Reporting: To make sure your Chapter 13 repayment plan is consistent with your financial situation, you need to report your finances accurately. Make sure all of your documentation is up-to-date and you have included all streams of income, debts, and basic necessities.
- Maintain a Budget: It isn’t enough just to follow your Chapter 13 repayment plan; you also need to make your own budget. Budgeting will help you to remove anything that isn’t a necessity so that you are able to consistently make your monthly payments.
- Modify if Needed: If your financial situation changes and you suddenly aren’t making as much money or you have more necessary payments, you need to modify your plan. Do this as soon as possible so that you do not miss a Chapter 13 payment and risk having your case dismissed.
FAQ:
Can I pay off my Chapter 13 early in Auburn, NY?
In rare cases, this may be a possibility if you are repaying your creditors 100%. But most people pay back less than 50% of their debt (the rest is wiped away in the bankruptcy) and there is no early repayment. The Chapter 13 plan is a set payment for a set number of months.
What happens if I miss a Chapter 13 payment?
Falling behind on your Chapter 13 payment plan could result in court dismissal unless it is addressed as quickly as possible. To avoid having this happen, you should request a payment plan modification if you are unable to make your monthly payments due to changes in financial circumstances.
Auburn’s Top Compassionate Bankruptcy Attorney
The Chapter 13 payment plan duration can be intimidating, but it doesn’t have to be. At Grady BK, PLLC, we are here to help you navigate filing for Chapter 13 bankruptcy as well as managing your plan once it is initiated. We will work with you and take into account your unique financial situation so that you get the best possible outcome.
At Grady BK, PLLC, we understand just how stressful bankruptcy can be, which is why we strive to provide clarity. We will be here every step of the way to answer any questions or address any concerns you may have.
Contact us today at 315-299-9005 to discuss your situation with a Chapter 13 attorney in Auburn, NY. Our team at Grady BK, PLLC, is here to help you move forward, whether you are just looking into bankruptcy or ready to get started.
