I have been shopping around for a bankruptcy lawyer but I am getting conflicting information so it is making me nervous. My question is how long is a chapter 13 bankruptcy? One lawyer in Poughkeepsie told me 36 months. Another lawyer in White Plains told me 60 months. Another told me between 36 and 60 months. HELP! I am so confused. obviously it makes a HUGE difference! Can somebody please tell me the TRUTH???????
It is a mandatory 60 months if on the day you file your past 6 months of income is over the median income for a family of your size.
The minimum period is always 36 months unless you repay 100% of the debt that files a proof of claim.
If you are a below median income family at the time you file you may choose any period between 36-60 months.
If you make less than the median income, you may qualify to pay off your Chapter 13 in 36 months. But you may wish to make smaller monthly payments to accomplish your Chapter 13 goal, so you may take as long as 60 months.
If you make more than median income, you must propose a 60 month plan or pay off 100% of your debt.
Hope this perspective helps!
Bankruptcy is a legal way for people or businesses who are no longer capable of paying back their bills to clear these debts and start over.
Federal bankruptcy courts oversee US bankruptcy filings. Most filers only need to appear in court once, but there can be exceptions.
Written by attorney John N Skiba
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