Bankruptcy may be an intimidating thought for some. The connotations of bankruptcy typically have negative meanings. People may imagine bankruptcy means headaches with obtaining credit and losing their homes. While some circumstances do fall under those scary consequences, Chapter 13 bankruptcy allows for a little more flexibility than people think. Chapter 13 bankruptcy can be a major lifeline when it comes to clearing up your financial picture. One of the major aspects of Chapter 13 bankruptcy is the ability to retain your possessions and still shave of debt in the process.

The way this is accomplished is by allowing you to consolidate certain debts and coming up with a plan to pay off your creditors. This is called a repayment plan. However, it can be challenging to make sure you come up with a plan that pays off your creditors but still leaves you with enough flexibility to maintain a decent quality of living. An experienced Phoenix bankruptcy lawyer can help you with the creation and oversight of a repayment plan to assure you peace of mind once your repayment plan starts.

Do I Need to Include My Mortgage on My Repayment Plan?

If you are a homeowner filing for Chapter 13 bankruptcy you may be wondering about the prospects of your house. Do you need to sell it? Will it be foreclosed on? Chapter 13 bankruptcy actually allows you to put a stop to your foreclosure contingent on you including any missed mortgage payments into your repayment plan.

However, only missed payments are eligible for this. You may still have to make monthly mortgage payments during and after your bankruptcy. For more guidance on how your mortgage and missed payments come into play for your bankruptcy, it is best to consult an experienced bankruptcy attorney for advice.

How Long Do I Have to Make Payments on My Plan?

While situations vary from person to person, you will typically have to make payments on your repayment plan from anywhere between three to five years. While that may seem like a long time to may fixed payments, if your debt was astronomical, you may end up owing less going through Chapter 13 bankruptcy than attempting to pay all your creditors monthly without the aid of Chapter 13 bankruptcy. A bankruptcy attorney can guide you through any questions or concerns you may have about your repayment plan period.

Can a Bankruptcy Attorney Minimize the Amount I Have to Pay?

Chapter 13 bankruptcy can be a good way of obtaining debt relief. Many people across the country have been affected by crippling debt and have used bankruptcy as a tool to get control back over their finances. Israel & Gerity, PLLC is committed to giving you all the help and advice you’ll need in your Chapter 13 bankruptcy. Zero-down bankruptcy programs are available to secure experienced legal counsel without having to worry about any upfront legal fees. Contact Israel & Gerity, PLLC at 602-274-4400 to set up a free consultation for your case.