If you have a steady income, but still cant afford all your expenses, Chapter 13 bankruptcy is a way to help ease the pressure of your debt. This rehabilitation agreement helps those swallowed by debt form a payment plan that helps to slowly decrease their debt over time. This enables the debtor to come up with a way to pay back all or at least a portion of their debt to the creditor. For this reason, Chapter 13 bankruptcy is also known as Wage Earner Bankruptcy.
A debtor is allowed to keep their property as they continue working to pay off their debts through Chapter 13 bankruptcy. The debtor must give a portion of their earnings to the creditor in order to pay back the debt. The payment plan one takes on usually last over the course of three to five years. The amount of time it takes to repay the debt depends on the person's annual income, the value of their property, and the amount of their expenses.
The catch is that Chapter 13 bankruptcy is only available to those with a steady income and debt cannot be over a set limit. If your monthly income is less than the median of the state you live in, your payment plan for your debts will be over a three year period unless a court finds a reason they should extend the plan over several more years. If you make more than your state's average income, your payment plan will probable by over a five year period. There can be no payment plan that goes over the five year period. There is a lot of confusion that exists in the process of filing for bankruptcy. The best idea is to consult an attorney with the knowledge of the language and inner workings of bankruptcy. They can better explain what will happen and what you are responsible for in your bankruptcy obligations. They can better inform you on what everything means.
For more info search Bankruptcy Attorney Phoenix or www.az-bankruptcy.net