Chapter 13 Bankruptcy Lawyer Waterbury, Connecticut
If you have a large amount of unsecured debt related to medical bills, credit cards, and so forth, it may be a good idea to think about a Chapter 13 bankruptcy lawyer Waterbury, Connecticut locals trust.
Chapter 13 bankruptcy is available for individuals, self-employed people, and unincorporated businesses. However, there is a strict amount of both secured and unsecured debt that you cannot exceed, and these can be explained to you by a bankruptcy lawyer Waterbury, Connecticut has to offer.
When you file for Ch. 13, you will need to have a source of income; furthermore, you must be able to pay back some of your debt over the course of three to five years. If you are unsure about whether or not bankruptcy is right for you, call The Law Offices of Ronald I. Chorches.
Should You File for Chapter 13?
If you would like to keep your primary residence, or select assets, and you can afford to pay off a portion of your debt, Chapter 13 bankruptcy may be right for you.
If you would like a complete fresh start and are willing to consider losing your home, Chapter 7 bankruptcy may be more suitable. Keep in mind, you must qualify for chapter 7 through taking a Means test.
More About Chapter 13 Bankruptcy
If you choose chapter 13 bankruptcy, you and your Chapter 13 bankruptcy lawyer in Waterbury, Connecticut will create a repayment plan to creditors. This plan typically lasts for 3 to 5 years. Payments are not made directly to creditors, but rather to the trustee. Moreover, they can be automatically deducted from your bank account or paycheck. Once the plan has come to an end, any remaining dischargeable debt will likely be discharged. However, not everyone will qualify for Chapter 13, and others will be suited to a different option. A chapter 13 bankruptcy lawyer in Waterbury, Connecticut can review your situation and help you to understand what is best for you.
Types of Debt
According to the Bankruptcy Code, there are three classes of debt:
- Secured Debt – This includes mortgages and auto loans
- Priority Unsecured Debt – Income tax, child support, student loans
- General Unsecured Debt – Credit cards, medical bills, etc.
What You Will Pay Each Month
The amount you are obliged to pay every month will be determined by a number of factors. It will be your duty to continue paying any secured or priority unsecured debt. In general, your repayment plan must be enough to cover a minimum of your mortgage and auto. In some cases, you may be able to reduce your vehicle payments and interest rates.
As a chapter 13 bankruptcy lawyer might explain to you, the most important thing will be that you can make the payments. This is required by law. However, if this is not possible, you may be suited to something else.
If you have a lot of debt, feel unsure about how you will pay it off, and are interested in filing for bankruptcy, please call a chapter 13 bankruptcy lawyer in Waterbury, Connecticut from The Law Offices of Ronald I. Churches. We will listen to your situation and help you to understand what may be best suited to your needs. Call us today for a consultation.