When you go through a Chapter 13 bankruptcy plan, you must make payments toward your debts, albeit under a more forgiving timeframe than you had before, with debts being reduced. You are getting a restructuring as opposed to wiping the slate clean. What you are really getting is breathing room and protection that can allow you to work your way out of debt over the long term. You would receive a payment plan for your own bankruptcy that you must meet.
Your repayment plan is something that you must negotiate with the Bankruptcy court. The repayment plan will consider your own unique circumstances and your own ability to repay. Your income will be the starting point for the plan, and the court will add your expenses and repayment amount to ensure that you have the ability to meet your bills. You would get 3-5 years to repay your debts, and creditors would be kept at bay during that time.
The Bankruptcy Court has an interest in giving you a fair repayment plan. Many debtors in Chapter 13 bankruptcies are unable to meet their payments and have to convert their bankruptcy to a Chapter 7 liquidation. The court wants to make restructuring feasible for you. An experienced bankruptcy attorney can help work with the court to give you a manageable restructuring plan based on your own resources, so you can successfully emerge from Chapter 13 bankruptcy. Courts have significant discretion in a Chapter 13 bankruptcy, and you have a right to be heard.
Bountiful Law can assist you in either the Chapter 7 or 13 bankruptcy processes, as you seek a fresh start from under a mountain of debt. To speak with one of our Washington bankruptcy attorneys, you can message us online or call us at 425.517.3051.