The repayment journey of Chapter 13 bankruptcy
Filing for Chapter 13 bankruptcy is a difficult decision to make in New York. It means you have gotten into a bad situation and haven’t been able to work out of it. Here is some information for the repayment journey of Chapter 13 bankruptcy in Long Island.
The first step in the filing process is to attend credit counseling. You will not be able to open a case without proof of credit counseling. You must see a credit counselor who will then determine if your case does warrant you filing for bankruptcy.
A repayment plan must include information about how you plan to repay your debts. It must also include all of your secured debts, which typically include car loans, mortgages and other loans. You will need to pay these secured debts on a regular basis when you file for Chapter 13 bankruptcy in New York.
If you have income remaining after paying the secured debts, you can use it to pay your unsecured debts. Unsecured debts include utility and medical bills, credit card bills and any other bill that comes across your desk.
It is possible that some of your unsecured debts will not have to be repaid, but you can only come to this conclusion by first making an effort to repay them. The length of the payment plan depends on two things: how much your income is compared to how much money you owe to creditors.
If you are on the road to bankruptcy, it’s always smart to discuss your situation with a Long Island Chapter 13 bankruptcy attorney. You won’t be able to go this route alone and an attorney will be able to provide you with plenty of counsel.
Source: Auto Credit Express, “Chapter 13 and You: A Journey of Repayment,” Aug. 09, 2017