While you will need to wait 3-5 years for this forgiveness, you will have access to an immediate benefit after filing your petition: the automatic stay. This court order prohibits your creditors from attempting to collect your debt in any way—except for through the bankruptcy court.
As such, Chapter 13 bankruptcy can be used to stop a foreclosure or vehicle repossession. You can also pay back-taxes and stop interest accrual on local, state, or federal taxes through your repayment plan. This form of bankruptcy provides a route for getting current on these payments over time and, where applicable, reinstating original agreements. Because of the 3-5-year restructuring process, this type of bankruptcy can lower your monthly payments.
Your Payment to the Bankruptcy Trustee
Your monthly payment will depend on your specific circumstances—namely, your income and expenses. At Adams Law Office, LLC, we understand that every case is unique, and we will work to get this payment as low as the law will allow through a careful presentation of your situation to the court.
Need advice and guidance regarding your overwhelming debt? Give us a call at (301) 900-5940 to speak with our skilled legal team.