When filing for Chapter 11 or Chapter 13 bankruptcy, an individual is eligible to enter into a repayment plan. The process generally lasts for three to five years, allowing you to make payments on debts at a reasonable pace for your income level while protecting many of your assets.
Everyday, people struggle with mortgage payments, student loans, car payments, medical bills, credit card debt and more. Debt issues can creep up on anyone, just look at New York Jets quarterback Michael Vick. Vick, who spent 19 months in prison for his connection to a dog-fighting ring, has paid back most of the $18 million he owed to creditors when he filed for Chapter 11 bankruptcy in July of 2008.
Vick worked out a yearly $300,000 budget, which sounds like plenty until you realize that Vick has earned an estimated $49 million from both the Philadelphia Eagles and the Jets since his release from prison and reinstatement by the NFL.
“I had never been on a budget before, so I had to pay attention to everything that I was doing,” Vick told Darin Gantt of NBC Sports. “Now I realize that I don’t need certain things I bought back in the day, like a new boat.”
Vick could have opted to file for Chapter 7 bankruptcy instead of Chapter 11, thereby discharging most of his debts. Instead, he elected to file for Chapter 11 because he wanted to repay his debts, much the way he paid his debts to society by serving his jail sentence.
Please note that Vick filed for Chapter 11 bankruptcy — a move often used by businesses, or occasionally by people with high incomes. The best option for the average person would be either a Chapter 13 or Chapter 7 bankruptcy filing.
Chapter 13 bankruptcy is an excellent option for debtors who have a steady income, but have fallen behind on payments and want to protect their assets. This form of bankruptcy allows the filer to enter into a repayment plan that may help save assets like a house, car, or even a boat.
If you run into a legal issue while going through your bankruptcy filing, do not hesitate to tell your bankruptcy attorney. There are resources at your disposal should you run into legal complications such as a DUI while undergoing a bankruptcy filing.
If you live in Maryland or Washington DC and are struggling to to keep up with your debt payments, call to speak with one of our Hyattsville Marylandbankruptcy repayment attorneys. The bankruptcy law experts of Gilman & Edwards, LLC have the tools and knowledge to help you achieve the results you seek from a bankruptcy filing.