Did you know that you could enter into a repayment plan when you file for Chapter 13 bankruptcy? These plans can last for three to five years, allowing you to make payments on debts in a reasonable fashion.
Issues with debt can happen to anyone. At some point, many people struggle with home loan payments, car payments, student loans, medical bills and credit card debt. Additionally, you can fall into debt through paying legal bills and fees.
For example, New York Jets quarterback Michael Vick, who spent time in prison for his connection to a dog-fighting ring and was banned from the NFL for a period, has paid back most of the $18 million he owned to creditors when he filed for bankruptcy.
Vick, who has earned an estimated $49 million since returning to the NFL, has begun to turn his life around. He is living off $300,000 per year and has had to stay financially disciplined.
“I feel blessed because I came out and found myself in a position where I had a lot of people that really believed in me, people who gave me an opportunity,” Vick said, according to NBC Sports. “At the time, it wasn’t about trying to fulfill all the bankruptcy needs. I was trying to fulfill all the needs that I had in my life because I had nothing.”
Vick’s creditors have praised his ability to repay his debts. It should be noted that Vick could have filed for Chapter 7 bankruptcy instead of Chapter 11, allowing for most of his debts to be discharged. However, Vick chose Chapter 11, because he wanted to repay his debts.
Vick said he would maintain the same financial frugalness he has developed during his bankruptcy even after his debts are paid off, and he is discharged.
Should I Talk to a Bankruptcy Attorney About a Bankruptcy Repayment Plan?
It should be noted that Vick filed for Chapter 11 bankruptcy, a move often used by businesses and people with high incomes. Most individuals opt for Chapter 13 or Chapter 7 bankruptcy filings.
Chapter 13 bankruptcy is an excellent option for debtors who have a steady income, but have fallen behind on house or car payments and are in danger of having their property repossessed. People who choose this form of bankruptcy enter into a repayment plan that can help save non-exempt assets.
If you live in the Washington DC or Maryland-area and are struggling to pay your debts, speak to our attorney. He can help you obtain a fresh start with your finances and explain the benefits of a repayment plan, and how it works.
Law Firm of Kevin D. Judd – Maryland and Washington DC bankruptcy attorney
Judd’s Judgment: More than 333,000 Chapter 13 bankruptcy cases were filed in U.S. bankruptcy courts in 2013.