A Chapter 13 Bankruptcy creates a workable plan to consolidate monies owed in order for you to make affordable monthly payments over a set period of time (3-5 years). This plan benefits those that have steady income, who believe their situation is temporary and can repay at least some of their debt. A Chapter 13 filing also stops the harassing collection calls, lawsuits, threats of lawsuits, repossessions and foreclosures.

Affordable monthly payments are determined by:

• monthly income of the individual(s)
• monthly expenses of the individual(s)
• amount and nature of the debts

Each monthly payment is sent directly to the Chapter 13 Trustee. The process of filing a Chapter 13 is a bit more complicated than a Chapter 7 and so it takes more time to complete. When the last payment of the Plan is made, you receive a discharge under Chapter 13 and all unpaid balances (not included in the plan) are discharged as well (with the exception of any unpaid portion of student loans, child support, and alimony). Your slate has been wiped clean.

Click here for a Free Bankruptcy Evaluation

The Law Offices of Sidney J Diamond is a debt relief agency helping folks in West Texas file bankruptcy.