Tuesday, January 10, 2017

How Long Will It Take To Eliminate My Debts If I File Bankruptcy?

When you are looking for ways to help with your budget, it is natural to want to find the quickest way out of debt. There are several debt repayment methods out there, which work well for those that are able to stick to a plan. For instance, there are credit card repayment methods that suggest you pay off the card with the highest rate first and then move on to the next highest rate card. The thought is that once one card is paid off, you take that monthly payment and add it to the monthly payment being made on the next card so that the debt is repaid faster. The theory is that if you do this, you will pay off your debt in a shorter amount of time than if you just paid the minimum on each debt. But what works for your friends or neighbors may not work for you, and in order to make some headway you have to find a plan you can follow.

A good plan to eliminate debt quickly is to file bankruptcy. The general timelines for debt elimination under bankruptcy are:

●          Chapter 7: a Chapter 7 bankruptcy will wipe out all of your unsecured debt. The total time to complete a Chapter 7 case, from start to finish, is about 6 months. This means that the debts discharged in a Chapter 7 case are no longer considered due on the date discharge is entered, between 3 and 6 months after the date your case is filed. And, you do not have to continue paying your debts during the case. This means you get instant financial relief the moment you file a case.
●          Chapter 13: a Chapter 13 bankruptcy case is a reorganization of your debts. In a Chapter 13 you come up with a repayment plan, your creditors can object to what you propose to repay them, and once you come to an agreement about who gets what the Court will confirm your plan. You will make plan payments for the entirety of your Chapter 13 case, which can last up to 5 years. The benefit is that when you file a Chapter 13 case, you get to pay what you can afford to pay, rather than struggling to make ends meet.

For help getting your debts in line, by filing bankruptcy, call our office today. We will look at your case and let you know what type of bankruptcy you can file. Our goal is to help you find a way to solve your money troubles, and start fresh.

If you have more questions about bankruptcy, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.

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