There are many options when it comes to bankruptcy. For instance, Chapter 13 can be a good fit for some people facing excessive amounts of debt. How do you know it’s the right choice for you? At the Kratovil Law Offices, PLLC, a bankruptcy lawyer will explain the process in clear and concise terms, thereby enabling you to make an informed decision.

Our legal team has extensive experience in the area of bankruptcy, including Chapter 13 filings. Sometimes referred to as debt reorganization, Chapter 13 allows you to repay outstanding debt over time and retain your property in the process.

Eligibility Requirements

With Chapter 13, your current income level and the total amount of debt you owe will be considered when the court is determining your eligibility. Regarding debt, the court will look at how much secured and unsecured debt you have when making their decision. Because debt limits can change, a bankruptcy lawyer is necessary to provide further clarification.

Creating a Repayment Plan

If you are deemed eligible, the next step will be creating a repayment plan. While the actual details of a repayment plan can vary depending on the court, terms usually span from three to five years. Payments will be made to a trustee, who, in turn, disperses money owed to creditors.

What Happens If You Can’t Pay

If you cannot keep current on your repayment obligations, the court will have to decide whether to modify your plan. In cases of hardship (such as loss of employment or debilitating illness), the court may allow you to discharge any remaining debt. If the court denies this request, your case may be changed to Chapter 7 (which entails selling off property to cover debt).

Contact the Kratovil Law Offices, PLLC to learn more about your options for tackling mounting debt. Call (304) 728-7718 to schedule a consultation with a bankruptcy lawyer in Charles Town, WV, or visit this firm online for more information on practice areas. When it comes to debt, great legal advice can make all the difference to your financial future.