The key of the Chapter 13 bankruptcy structure is the
payment plan. This is the single most important difference between filing Chapter 7, where there is no plan or devices to pay back the debt.
This bankruptcy plan is flexible, and the duration of it typically is 3 years to pay off the debt. In return for the promise to make these monthly payments, the debts are wiped clean.
Great, you're saying. But what factors determine how much I'll be paying each month? There are many. Factors that go into a Chapter 13 payment plan criteria are things like: reliability and stability of income, amount of debt, amount of income, etc. It is possible that you can end up paying very little each month, or it can higher, like 70 cents on the dollar. A good attorney can help you find a payment plan that you can live with, and remember, this allows you to avoid foreclosure and you can keep your house.
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