Hardworking Attorney Helping Fargo-Moorhead Clients File Chapter 13 Bankruptcy

You may find yourself in a position where you’re able to generate enough of a sustainable income that excludes you from a Chapter 7 bankruptcy, but still be in a combined debt that’s too difficult to pay off. That kind of situation calls for a Chapter 13 bankruptcy, which offers you the breathing room you need to orient your repayment schedule towards your priority, secured debts.

What a Chapter 13 Filing Entails

Unlike a Chapter 7 bankruptcy, which is a liquidation agreement, Chapter 13 is a reorganization bankruptcy created for debtors who bring in enough regular income to have sufficient monthly surplus to follow a repayment plan for at least a portion of their debts.

Most Chapter 13 filers exceed the maximum income level to qualify for Chapter 7 bankruptcy. But many debtors choose to file for Chapter 13 bankruptcy because it offers benefits like the ability to catch up on missed mortgage payments. Chapter 13 bankruptcy lets you retain all of your property, including your nonexempt assets—although you will have to repay creditors an amount that’s equal to the value of your nonexempt property. In exchange, you start following a repayment plan for a portion of your debts. The court decides on that required repayment amount based on your income, expenses, and type of debt.

Chapter 13 bankruptcy can benefit you if you don’t qualify for Chapter 7 but need to lower your credit card payments, stop litigation, or prevent a wage garnishment. All the while you’ll still be able to pay off your nondischargeable debts like mortgage, alimony and child support arrears over just a few years.

At O’Day Law Office, PC, we’ve worked on hundreds of Chapter 7 bankruptcy filings during our 24 years in practice. We’ve got your back, and we’re ready to help you through this phase and get you on the road to financial wholeness. Call our office at (701) 298-9326 to schedule a consultation.