Idaho Chapter 13 Bankruptcy Lawyer

Understanding the Wage Earner's Plan

Chapter 13 bankruptcy allows individuals with a regular income to restructure their debts into a more manageable 3 to 5 year repayment plan. This can allow consumers to keep their property while repaying some or all of their debts to creditors. If you are consistent with the payment plan, all your remaining dischargeable debt may be released at the end of the plan. The duration of your payment plan and the amount you will be required to pay will depend on several personal circumstances. At Avery Law, we have assisted numerous clients during their Chapter 13 proceedings and our Idaho bankruptcy lawyers are prepared to walk you through your Chapter 13 bankruptcy.

If you have a steady income, sufficient assets or property and the ability to afford monthly payments toward covering a least some of your debt, you will most likely file under Chapter 13 bankruptcy, as Chapter 7 bankruptcy is reserved for individuals who have little means to pay their preexisting debt. The bankruptcy process will begin when you file a petition with the bankruptcy court.

An automatic stay will then be issued, protecting you from debt collection activities such as lawsuits, wage garnishments, foreclosure proceedings and debt collection phone calls. You must also supply information about your financial affairs, your debts, your living expenses and information about your income. As the legal work involved in compiling and supplying such information can be difficult, our Idaho bankruptcy attorneys make it a point to handle these procedures on your behalf, while keeping you fully informed about the progress of your case.

The Chapter 13 Payment Plan

Depending on your financial situation, your debts will then be consolidated and reorganized into a payment plan that will last three or five years. To determine the length of your plan, the court will use a means test to compare your monthly income to the state of Idaho's monthly income. If your monthly income is greater than the median income, you will use the five year payment plan. If it is less, you will use the three year payment plan. Although you will be responsible for making payments on your debts, you may still be eligible to discharge any remaining debt after you have completed the three or five year payment plan. This debt forgiveness can ultimately allow you to pay less than the total amount of debt you owe, while at the same team protecting your property and assets.

Retain the Experienced Support You Need

While the Chapter 13 bankruptcy process is no easy task, you can successfully navigate through these proceedings with the assistance of our firm's Idaho bankruptcy attorneys. With more than 65 years of combined experience and more than 8,000 bankruptcies filed, our legal team knows the ins and outs of Chapter 13 bankruptcy. As a result, we are fully prepared to educate you about your unique situation and to support you throughout every step of your journey.