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Modifying a Repayment Plan Under Chapter 13

Law Office of Scott N. Tisevich Dec. 20, 2023

Bankruptcy Chapter 13 formWhen you’re experiencing financial turmoil, it's often hard to see the light at the end of the tunnel. Amidst this struggle, Chapter 13 bankruptcy can offer some hope, providing a structured way to manage debt and regain control of your finances. This is where the Law Office of Scott N. Tisevich can assist.  

Based in Reno, Nevada, and serving clients across Churchill County, Lyon County, Carson City, Story County, Douglas County, and Las Vegas, Scott N. Tisevich is committed to guiding his clients through the complexities of Chapter 13 bankruptcy. He understands the challenges you face when overwhelmed by debt and offers a lifeline in the form of Chapter 13 bankruptcy—the "wage earner's plan."  

By restructuring your debt, you're not only able to keep your property but also lay out a clear path to repay your creditors over three to five years. This process allows you to catch up on overdue payments, avoid foreclosure or repossession of your assets, and ultimately achieve a fresh start. 

The Basics of Chapter 13 Bankruptcy

For those battling with mounting debts, Chapter 13 bankruptcy can be life-changing. It's a type of bankruptcy that allows individuals to hold onto their property while committing to repay their creditors over a span of three to five years. But what does it mean to modify a repayment plan under Chapter 13? Scott N. Tisevich will guide you through this process, offering valuable insights for those considering this path to financial stability. 

Chapter 13 bankruptcy is particularly beneficial for individuals with a consistent income. It offers a structured way to manage debt more effectively, preventing the foreclosure or repossession of assets. By filing for Chapter 13, you can catch up on overdue payments, and creditors are prevented from taking further action during the repayment period. This stay gives you the breathing room you need to get your finances back on track. 

Understanding Your Repayment Plan

When you're under Chapter 13 bankruptcy, think of it as a consolidation loan. It restructures your debt, making it more manageable over a set period. While your debt doesn't disappear, you have the opportunity to protect your secured property and lessen the impact on your credit score. Keep in mind, though, certain debts such as child support, alimony, and taxes aren't discharged through Chapter 13. You'll need to keep up with these payments throughout your bankruptcy proceedings. 

Modifying your repayment plan under Chapter 13 requires meeting specific criteria. You'll need a steady income and must file as an individual, not a business. As of April 2022, your secured debt must be below $1,257,850, and unsecured debt should not exceed $419,275. You'll also need to demonstrate that you can maintain monthly installment payments and file for relief in good faith. 

Navigating the Filing Process

Filing for Chapter 13 bankruptcy requires meticulous documentation. You'll need to provide a comprehensive list of your creditors, outlining the amount owed and the nature of the debt. Your income source, amount, and frequency will also need to be disclosed, along with a detailed list of all assets and monthly expenses. If you're married, both you and your spouse must provide this information, even if you're filing separately. 

Why Working With a Bankruptcy Attorney Matters 

Given the complexities of Chapter 13 bankruptcy, it's highly advisable to seek guidance from an experienced bankruptcy attorney. A skilled attorney like Scott N. Tisevich can help you navigate the filing process, ensure all requirements are met, and increase the chances of a successful outcome. The Law Office of Scott N. Tisevich in Reno, Nevada, is dedicated to helping clients make informed decisions and achieve a better financial future. 

Modifying a repayment plan under Chapter 13 bankruptcy gives individuals burdened by debt a fresh start and a path toward financial stability. Understanding the benefits, requirements, and filing process can empower you to make informed decisions and regain control of your financial situation. If you're considering Chapter 13 bankruptcy, consulting with a reputable bankruptcy attorney like Scott N. Tisevich can help you explore your options and find the best solution for your unique circumstances.