How long it will take you to pay off your debt depends on your individual situation. There are different ways you can go about paying off your debt. You can create your own budget to follow and pay it off that way, you can have your Minnesota debt settlement attorney negotiate with your creditors to lower balances and eliminate fees and interest so you can establish an affordable repayment plan, or you can file Chapter 13 bankruptcy. What you do will determine how long it takes you to become debt-free.
Paying Off Through Debt Negotiation
If you wish for your attorney to negotiate your debt for you, then you will be looking at varying time periods. For instance, there are times that creditors will want payments made in thirds. This means making three payments that will cover the entire negotiated amount. If that’s the case, then it will only take a few months to pay off that individual debt.
Other times, a deal can be made to pay off debt over a 12 to 36 month period. The attorney is able to negotiate a lower dollar amount with the creditor so that you can divide the payments up evenly over a period of time. It usually does not take beyond three years for average debt to be paid off. However, there are times in which it can take longer.
Establishing A Chapter 13 Repayment Plan
You can work with your bankruptcy attorney toward establishing a Chapter 13 repayment plan if you choose that bankruptcy is the right option for you. In this plan, you can include all of your debt. You can include taxes, student loans, your mortgage, and your car loan. In Chapter 7, you cannot have taxes and student loans discharged unless there is an extreme circumstance. Chapter 13 makes this much easier for you.
This payment plan can take anywhere from 36 to 60 months for you to pay off. The court wants to push for the least amount of time, but there are cases where the payment plan will be allowed to extend out five years.
If you wish for assets to not be touched by bankruptcy, then Chapter 13 is the plan you want. Once all debt that is included in the plan is paid off, the bankruptcy is discharged and you can move forward with a clean slate. It is possible for 100% of debt to be included in the plan, but it is most likely that a percentage of it will be included in the plan as long as creditors agree to a reduced amount so they receive some money.
Contact A Minneapolis Bankruptcy Lawyer
If you are overwhelmed by debt and you want to know what your debt repayment options are, the McKinney Law office can help you. You may find that the right option for you is debt negotiation or bankruptcy. Whatever the option that will give you the debt relief you need, you will receive help every step of the way. To learn more, call the Minneapolis office at 612-206-3706 or the St. Paul office at 651-379-4110 for a free consultation.
This law firm is a debt relief agency, and we help people file for bankruptcy relief under the United States Bankruptcy Law.