Chapter 13 bankruptcy is designed to help the person filing for bankruptcy reorganize their debt. This means you can restructure your debt into a three to five-year retirement plan. This means you could end up discharging some debt while obtaining more time to pay off others. Chapter 13 bankruptcy can allow you to have a second chance to turn your financial situation around and get the financial relief you want. Our Southern California bankruptcy attorneys explain how much your Chapter 13 payments could be.
How Are Chapter 13 Payments Determined?
One of the questions that many people have when applying for Chapter 13 bankruptcy is how much their monthly Chapter 13 payments will be. Calculating those payments isn’t just a matter of adding up your bills and dividing it by 24 months. The calculation is more complicated because the bankruptcy courts will need to make sure that those payments are manageable for you.
They will consider the following factors when determining your Chapter 13 payments:
- Income and expenses
- The total amount of debts including secured & unsecured
- The value of your property and your assets
The payment plan will need to account for all your source of income, including seasonal pay, alimony, and more. If you are behind in secured debt payments (mortgage or car payments), and you want to keep the property, your income has to be enough to pay those debts and your Chapter 13 payments.
Call Our Los Angeles Bankruptcy Attorneys: (800) 996-9932
If you’re interested in applying for Chapter 13 bankruptcy, but you want to get a better idea of how much your payments might be, our team at Wadhwani & Shanfeld can help you. Our team is dedicated to helping people and families achieve financial freedom. In fact, we have helped nearly 20,000 people across Southern California. If you need guidance through your bankruptcy case, you can rest assured our team has the skills needed to help you achieve your desired outcome.
Get in touch with our Southern California bankruptcy lawyers today at (800) 996-9932 to schedule a case review!