Because of the financial strain Covid 19 has put on so many people, the Law Firm of William H. Lively, Jr. is lowering the up front costs for filing Chapter 13 bankruptcy cases for new clients. If you need to file a Chapter 13 bankruptcy and cannot come up with a large down payment to hire an attorney, contact our office–we can help get you protected for less.

Would you be comfortable with a bankruptcy payment plan

Some people facing bankruptcy opt for filing Chapter 7, but others prefer Chapter 13.

A Chapter 13 bankruptcy features a monthly payment plan that enables you to keep your home and other possessions. Does this sound interesting?

Why you should consider Chapter 13

Chapter 13 bankruptcy may be a good fit for you if you have employment, a steady monthly income and can maintain a disciplined approach toward paying off your debts. It may take up to five years for you to complete your bankruptcy obligation. However, the trustee managing your account may be willing to work with you to stretch out your payments or reduce the monthly amount you have to pay.

What to expect

Keep in mind that the Chapter 13 program requires you to make payments out of your disposable income; that is, anything that remains out of your monthly income other than what you must pay for food, shelter, medical care and similar necessities. Any extra money you have will go toward the repayment plan for the duration of the bankruptcy. You will also lose your credit cards, but you can acquire new credit cards within one to three years after filing. Just know that you will have to pay much higher interest rates.

How to proceed

With sound guidance, you can make an informed choice between filing for Chapter 7 or Chapter 13. However, the latter is likely going to be your choice if keeping your home and other possessions is important to you and you believe you can commit to the Chapter 13 program for the duration. Once you succeed in clearing burdensome debt out of your life, the future will look a great deal brighter.