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The problem becomes worse if you have creditors at your door demanding payments that you cannot make, and threatening you with adverse circumstances or lawsuits if you don't pay up. In such situations, you can file for bankruptcy under chapter 13 to seek relief from the court of law. The court can grant you the permission to pay your debts, wholly or partially, in installments spread over a period of three years. In some cases, the court may also give you five years to discharge your debts.
Once you obtain a stay from the court, the creditors can no longer harass you in any way. This is because the only way they can contact you is through the court, so you will get relief from their incessant demands to pay the loans due to them.
The court provides you with a docket number to protect you from your creditors. Once you show them the docket number, they can no longer harass you or get you summoned by the court to dispossess you of your property.
You may be indebted to both secured and unsecured creditors. In most cases, the unsecured creditors receive only 10 percent of their debts. For instance, if you owe someone $2,000, you will be required to pay only $200 spread over a period of three to five years. This means that you will have to pay just a few dollars in each installment.
Even in such cases, if there is some change in your income and you want readjustment in your payments, you only need to inform the court and the necessary amendment is usually granted. You must, however, be ready to pay additional court fee and the fee of your attorney.