If your assets include lots of equity (usually a home), and you don't have enough exemptions, then as long as you have regular income and certain debt limitations, you can generally come up with a payment plan.
This plan will say that over three to five years during which interest will stop growing on credit cards, you'll be paying a percentage of your debts to a bankruptcy trustee, who will then parcel out the payments to creditors. You still make your mortgage and car payments, if any, but often any past-due amounts can be paid over the three- to five-year period.
Is This The Best Plan For You?
Under Chapter 13, you can keep most all of your property as long as you make your payments under the plan. And once you complete your plan, most of your debts will be discharged.
The law was changed in 2005 to require everyone to examine what sort of income they have received during the previous six months before bankruptcy to see whether or not average monthly income over that time period is below or in excess of the "median income" for a household your size. If you are an "above median" debtor, there may be some problem areas.
Chapter 13 is a complex area, and you will need an experienced bankruptcy lawyer to see you successfully through the process. We invite you to call the Richmond Chapter 13 lawyers at Coates & Davenport, P.C., at 804-729-5537 or to contact us via our online form.
For more information about Chapter 13, consult our Bankruptcy Basics page.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.