You may prefer the Chapter 13 bankruptcy option because you want to maintain your dignity and fulfill your promise of paying back your creditors. But just know that when you select this bankruptcy type, you are signing up for a relatively extensive repayment schedule. So follow along to find out how long it may take to complete your repayment plan and how a proficient Rockland County Chapter 13 bankruptcy attorney at The Law Offices of Allen A. Kolber, Esq. can help finalize a plan that works best for you and your financial state.
How long does it take to complete a Chapter 13 repayment plan?
Generally speaking, a Chapter 13 repayment plan may take anywhere between three to five years, from start to finish. This countdown may begin within 30 days from the date on which you initially filed your Chapter 13 bankruptcy case.
This may seem like a drastic range in timeline, but it all comes down to your income and the amount of debts you need to repay. For example, your repayment plan may be scheduled closer to three years if you earn less than the median yearly income in your state (i.e., $69,135 for one earner) and need to pay back all of your short-term debts. On the other hand, your repayment plan may be scheduled closer to five years if you earn more than New York State’s median income and primarily have long-term debts (i.e., your mortgage, student loans, etc). that do not necessarily need to be paid off in full by the time your final repayment is scheduled.
How can I modify the length of my repayment plan?
You may have thought you could handle your Chapter 13 repayment schedule when you initially agreed to it. But, understandably so, your financial circumstances may have since changed. That is, you may have been diagnosed with a serious medical condition, you may have been laid off from your steady employment; or you may have welcomed a new child into your family; among other things. This is all to say that you may be better off with a modified version of your repayment plan.
So, if the New York bankruptcy court has yet to approve your initially proposed repayment plan, you may file a petition for an amended plan. This may be approved so long as your bankruptcy trustee and creditors agree to it, as well. Or, if your repayment plan is already in motion, you may file a motion to modify your expected monthly repayment amounts. This may require proof that you can no longer sustainably afford your currently-standing schedule. Lastly, if you are deep into your repayment plan, you may file a petition for a hardship discharge. This may only apply if your financial state takes a serious turn for the worst, though.
In conclusion, you must not second-guess your decision to retain the services of a talented Rockland County bankruptcy attorney. This is because we can guarantee someone at The Law Offices of Allen A. Kolber, Esq. can guide you through every step of the way.
