Chapter 13 bankruptcy is a debt reorganization and repayment plan for consumers. It protects you from adverse creditor actions such as home foreclosure and repossession and give you time to get caught up on bills. It may also allow you to reduced unsecured debts such as credit card bills to a fraction of what you owe.
At the law firm of Robinson, Seiler & Anderson, LC, in Provo, Utah, our attorneys help people file Chapter 13 bankruptcy and get the fresh financial start they need. We offer a free initial consultation to discuss your case. Our lawyers will examine your financial situation and explain your options.
What Does Chapter 13 Bankruptcy Work?
When you file Chapter 13 bankruptcy, our attorneys will work with you to create a three- to five-year debt payment plan. Generally, there will be two types of debts:
- Debts which you must repay in full. These include secured debts such as home mortgage arrearages, as well as student loans and child support.
- Debts which you only have to pay what you can afford. These include unsecured debts such as credit card bills, hospital bills and payday loans.
At the end of your three- to five-year payment plan, you will receive a tax-free discharge of unsecured debts.
How Is Chapter 13 Bankruptcy Different From Debt Consolidation?
Your creditors are under no obligation to forgive debt under a debt consolidation plan. You may actually end up owing more due to penalties and debt consolidation fees. Even if a creditor agrees to reduce your debt, you may owe taxes on the amount of forgiven debt. You do not owe taxes on debts discharged by bankruptcy.
Contact a Utah Debt Repayment Plan Lawyer
To arrange a consultation with our Provo Chapter 13 bankruptcy lawyers, call 801-669-9254 (888-866-3503 toll-free) or contact us online. Hablamos español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
