How much time will I have to repay debts for a Chapter 13 bankruptcy filing?

If you are struggling with debts, bankruptcy may be a viable solution.  The procedures, rules, and requirements for filing bankruptcy are governed by the Bankruptcy Code which was enacted to give people that are overwhelmed with debt a fresh start. 

Depending on your circumstances, you may file either a Chapter 7 or a Chapter 13 bankruptcy case.  A Chapter 7 bankruptcy allows you to eliminate most of your unsecured debt.  Chapter 7 bankruptcy is ideal for people who have few assets or whose assets have little equity.  To qualify to file a Chapter 7 bankruptcy, you must pass either the median income test or the means test.  If you satisfy all the Chapter 7 discharge requirements, you will most likely receive a discharge about 90 days after you file bankruptcy. 

Chapter 13 bankruptcy allows you to repay your debts over a three to five year period.  Chapter 13 bankruptcy is ideal for people with lots of assets or whose assets have substantial equity.  To qualify for Chapter 13 relief, you must have regular and stable income which is sufficient to fund your Chapter 13 plan.  At the successful completion of the Chapter 13 plan, your case will be discharged. 

Whether you file a Chapter 7 or a Chapter 13 case, you must take a pre-bankruptcy counseling class.  Additionally, before you can receive a discharge, you must complete a pre-discharge counseling session.  

If you have questions about filing bankruptcy, you should contact a qualified bankruptcy attorney in your area.  A bankruptcy attorney will review your case and advise you of whether Chapter 7 or Chapter 13 bankruptcy is best for you.