Chapter 13 Bankruptcy At A Glance
Chapter 13 bankruptcy has many different benefits. However, the main benefits are:
- To repay creditors in a timely manner to the extent that the debtor has assets to use for repayment.
- Reorganize debt and develop a payment plan to repay their creditors
- To give debtors a fresh start in life by eliminating the majority of their debt
Bankruptcy protects people with large amounts of debt and troubled businesses through reorganization or liquidation of assets to provide equal distributions to the person or business’s creditors. However, most businesses will file under Chapter 13 which is a payment plan to pay off debts.
With a liquidation of some assets from a company or a person, there tends to be little to no money available to repay the business’s creditors. Therefore, there are fewer arguments and issues, and the judge will grant a discharge of most debts without objections.
Another saving grace is that it is a plan that can change if your circumstance changes. You can modify your plan if any of the following happen:
- You lost your job
- You get a new job
- You get a pay raise or a reduction in your pay
- You want to sell your car
- You want to downsize and sell your house
- And more…
These are things that will allow you to go back to the bankruptcy court and ask for a modification of your debt repayment plan.
Saving Your Assets Through A Debt Repayment Plan
With a debt repayment plan, you can save your assets and not have to liquidate them to repay debts by setting up a payment plan. With a business that is active or a person who is currently employed, you will have income. A judge and bankruptcy trustee will look over the income and come up with a payment plan, albeit a small payment plan, to repay your or your business’s debts over a period of three to five years. Some creditors will be paid in full and some will not. Each case is different.
Overcome financial hardships that drain your savings by filing for Chapter 13 bankruptcy with the help of Flynn Law Firm in Cabot, Arkansas. We can assist you in submitting a wage earner’s plan that will allow you to repay your debts over time while saving your assets and house from foreclosure, repossession, or liquidation.
Chapter 13, also known as a debt repayment plan, is a reasonable way for you to consolidate your debt into smaller payments and not have to liquidate any assets and it is based on what you can actually afford. The debt repayment plan requires you to pledge your disposable income for three years but no more than five years. If you do not have a lot of disposable income, then you will pay what you make over reasonable living expenses.
What We Offer
Headed by an experienced lawyer named John Flynn, our law firm in Cabot, Arkansas strives to serve the needs of people who want to achieve debt relief through Chapter 13 bankruptcy. We will provide our clients with the information they need to make a well-informed decision about their bankruptcy declaration. We not only want to assist you in getting out of your debt, but we want to help you fully recover from it and start fresh financially. These details include Arkansas state exemptions and more. John Flynn will work directly with you on your matter to help you avoid any unexpected problems by personalizing your application and documents to fit your particular needs.
If you are in the market for a Chapter 13 lawyer, a Chapter 13 Bankruptcy Attorney, information on exemptions Under Chapter 13 Bankruptcy Law, or a bankruptcy court lawyer, reach out to our attorneys at Flynn Law Firm for our highly sought-after experience. Our firm offers complimentary consultations to guide you in your decision if bankruptcy is the way you should go.