So What is A Chapter 13?

Chapter 13 can consolidate your debt based on YOUR budget rather than the terms dictated by the creditors. It’s one payment that is affordable to Y-O-U.

And – why would it help me?

Chapter 13s are often misunderstood. Some debt consolidation schemes may advertise paying back your debt to AVOID bankruptcy. You pay one payment for an estimated amount of time to creditors. Sounds great right?

What we have seen, most people who attempt debt consolidation end up filing for bankruptcy because some creditors or banks may NOT negotiate or settle. You are paying a monthly fee to a company only to find the monthly payment is not paying down the debt but rather the fee. If you owe thousands in debt, it could take YEARS and THOUSANDS to be able to pay down balances.

Unlike debt consolidation, creditors do NOT get a choice of negotiating in a Chapter 13. You use federal law to get help with your bills. Chapter 13 can consolidate your debt based on YOUR budget rather than the terms dictated by the creditors. It’s one payment that is affordable to Y-O-U.

If you are working full time or have a steady source of income and want to pay your debt, filing a Chapter 13 could be a great option. Rather than paying minimums only to use the credit again, you actually pay off what you can afford.

Check out the excerpt below from Attorney Peter Francis Geraci’s, “Complete Book on Bankruptcy.”

All your credit can be paid with one payment to the Court trustee, if you qualify for a Chapter 13 plan. It is possible to consolidate all your outstanding bills into one lower monthly payment, and be protected from credit action during the time you make your payments.

Chapter 13 plans usually run from 3 to 5 years. You can get a rough idea of your maximum Chapter 13 payment by adding up all your bills, dividing by 36 to 60 months. Add 10% to the monthly payment, and the total would be your Chapter 13 payment. This is an over-simplification, and your payment could be less, but this is the basic idea.

Usually, there is no further interest paid to creditors under a Chapter 13 plan. Exceptions to this are cases where you are paying for a house or for a car, or when the creditors could get all their money immediately if you were to liquidate your assets.

A Chapter 13 bankruptcy is an amazing resource available to people simply struggling. Geraci Law will file the case for no-money down and you get the immediate relief and time to pay down your debt.

Dial 1-800-CALL-PFG for a free phone mini-consultation, or make an appointment online 24/7 at  Bankruptcy laws are in place to help you.  Who knows bankruptcy like Geraci Law?  Geraci Law has 30,000 5-star reviews 5starsince November 2016!


Author: Elizabeth Doren Paralegal at Geraci Law L.L.C.

I am a paralegal at Geraci Law L.L.C. (the greatest consumer bankruptcy law firm that ever was or will be!) I talk to thousands of people who are struggling financially.

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