Struggling with debts can be an isolating and debilitating experience. Financial anxiety can negatively impact every aspect of your life, and it’s common to feel hopeless about the future. However, it’s essential to recognize that you have options for getting your life back on track. In Central New York, Chapter 13 bankruptcy allows you to establish a repayment plan that can help you move out of debt and into a brighter financial future. Here is a brief overview to pursue a Chapter 13 bankruptcy filing in Central New York and what steps you can take to get started.
How Chapter 13 Bankruptcy Works
Under Chapter 13 bankruptcy, also known as “wage earner” bankruptcy, individuals with a regular source of income may establish a repayment plan to pay back a percent to their creditors within a specified time (typically between three to five years). The repayment amount is usually less than the total payments you are making now. The attorney will work with you to determine how much your monthly payments will be during this repayment plan period. During this time, an automatic stay applies, preventing creditors from contacting you, suing you, or adding additional interest. At the end of the repayment period, remaining debts will be wiped away, and creditors will be barred from attempting to collect on these debts in the future.
Is Chapter 13 Bankruptcy Right For Me?
There are a few advantages to filing a Chapter 13 bankruptcy in Central New York. Many people who do not qualify for relief under Chapter 7 bankruptcy (i.e., they make too much money and/or have unprotected assets they want to protect) may decide to pursue a Chapter 13 bankruptcy filing. Those wishing to stop a foreclosure or repossession may also elect to file for Chapter 13 bankruptcy relief. Additionally, if you’ve received a Chapter 7 discharge less than eight years ago but need protection from creditors, you may consider filing a Chapter 13 bankruptcy.
Compassionate Legal Guidance When You Need it Most
If you are overwhelmed with debt, you are not alone. Many people feel ashamed of their dire financial situations, but individuals, families, and businesses across the country are also struggling financially. Rather than feeling trapped, you should seek the compassionate guidance of a trusted Central New York bankruptcy attorney who can help you feel hopeful about your future once more. Together, you can assess your financial situation and determine the most strategic course of action to help you regain control of your finances.