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Chapter 13 Bankruptcy RI | Johnston, Rhode Island

Improving Debt Terms, Resolving Debt and Getting Back on Track

Chapter 13 bankruptcy in RI has become a viable option for individuals facing financial struggles. In contrast to Chapter 7 bankruptcy, Chapter 13 bankruptcy provides individuals with the opportunity to repay part or all of their debts, at no interest. What you payback depends on your financial ability and NOT what creditors would like you to pay.

With Chapter 13 bankruptcy in RI there is no one set amount to pay back to creditors. Some people will pay five cents on a dollar and some will pay one hundred percent. At Pitts & Burns, we will carefully examine your income in relation to those living expenses required for you and your family. We will then propose to the Court that you pay what you have available after meeting those necessary expenses.

The most common Chapter 13 client is the family that is paying $500.00 per month toward the minimums that have become due on their credit cards, but is getting nowhere when it comes to reducing principal. Chapter 13 allows that person to pay what they have available to unsecured creditors for a period between 3 to 5 years . Thereafter, if you have not paid the principal off, the remainder of the debt is discharged, FOREVER.

The other common Chapter 13 client has fallen behind on their mortgage after a temporary setback or failed attempt to obtain a loan modification. This person can pay off the arrearage that has developed over a five year period, which is a far better choice than the full demand being made by the mortgage company.

Instead of liquidating debt, a Chapter 13 bankruptcy restructures the debt, allowing the debtor to use future income to pay off current creditors.

This form of bankruptcy is especially applicable for a debtor with consistent, regular income, but just is not able to get caught up due to ever growing late fees and absorbent interest charges. With more than 28 years' experience as Providence Chapter 13 bankruptcy attorneys, Pitts & Burns, Attorneys at Law, can help you resolve debt and guide you as you file for Chapter 13 bankruptcy relief.

Rhode Island Bankruptcy Payment Plan

A Chapter 13 bankruptcy involves a payment plan over a three to five year period, where the sum of money left over from your net monthly income and living expenses is disbursed to the creditors. The amount you pay the creditors will depend on your income and your personal expenses. If you are considering filing Chapter 13 bankruptcy, contact our office for more information about how we can help you restore your life and peace of mind.


Contact a Providence, Rhode Island Bankruptcy Attorney Today

If you are seeking legal representation or would like more information about our services, contact our office today for an initial consultation. You can reach us toll free at 401-453-2800 or by contacting our bankruptcy firm online.