Paying Off Your Debt via Chapter 13

If you are considering Chapter 13 bankruptcy, you may be wondering how long it will take to pay off your debts.

While there is no exact formula for determining the length of time required to pay off debts, you will generally be given three to five years to do so. The amount of time will be determined by how much money you have left over after taking care of your necessary expenses; the remaining amount will be paid off in monthly installments.

You will work with your bankruptcy trustee to determine your payment amount, and then you will be obligated to stick to it for the duration of your payment period. If you are able to make all of your payments, the remaining debts will be discharged. In addition to your bankruptcy payments, you must also make any additional payments that you were previously making to other creditors. These include items like mortgage and automobile loan payments.

If you're filing for Chapter 13 in Illinois, contact our law office now to set up a consultation with a Chicago bankruptcy attorney that can help.