When you are struggling with debts, the actual amount of debt that you have could make you feel as though it is impossible for you to ever be debt-free. However, when you take a step back and divide the repayment goal into monthly, manageable chunks, the debt probably won't seem as daunting.
In very basic terms, this is how filing for Chapter 13 bankruptcy works, and it also has some additional notable advantages. Typically, a debtor who files for Chapter 13 bankruptcy will be given the chance to reorganize their finances so that they have some disposable income each month. This disposable income will be used to repay the debts that they have through a monthly repayment plan.
How much will I need to repay each month under a Chapter 13 bankruptcy repayment plan?
When filing for Chapter 13 bankruptcy, a means test will be conducted. This means test will determine the amount of funds you will have in order to be able to pay off your debts. If you do not have enough funds and fail the means test as a result, you still have the option to file anyway.
How long will it take me to repay my debts?
Under Chapter 13 bankruptcy, you will have between 30 and 60 months in which to repay your debts. The payment plan will often include additional expenses such as taxes and child support so that it is easy to keep up with all of your obligations.
If you are considering filing for a Chapter 13 bankruptcy in the state of Florida, an attorney can help by providing more information and advice.