Chapter 13 Bankruptcy

In a Chapter 13 bankruptcy case, an individual with regular income repays all, or a portion of his or her debts over a three-to-five-year period through a monthly payment plan approved by the Bankruptcy Court. For that reason, a Chapter 13 bankruptcy case is sometimes referred to as a “wage-earner plan.” Also, many sole proprietors file Chapter 13 bankruptcy plans to restructure how their debts are repaid. The Chapter 13 Bankruptcy Trustee does not take possession of non-exempt assets, but supervises the case and administers the payments to creditors under the Chapter 13 bankruptcy plan. In exchange for these payments, you can keep property you have, which a trustee would sell from under you in chapter 7 bankruptcy. So in chapter 13 bankruptcies, you can:

  • Save your house
  • Keep your car
  • Keep your property
  • Save your business

The amount of your plan payment and the length of your plan depends on a number of factors. One factor is how much disposable income you have left over every month after you pay your living expenses. A second factor is how much you are behind on your secured debts (e.g., mortgage, car payment, etc.)

The most common reasons for consumer bankruptcy claims are (a) loss of a job or long-term layoffs; (b) loss of overtime hours; (c) lengthy illnesses and large medical expenses; (d) death or disability of a spouse; (e) separation, divorce and marital problems; (f) seriously over-extended credit; and (g) large unexpected expenses.

Does a Chapter 13 bankruptcy sound like something you’re interested in? Call us today to learn more

Call today for your free initial consultation and let us help you achieve your debt free goals – 1-855-752-Free(3733)
Latest News From Our Blog

Mortgage paperwork mess: Next housing shock?

(CBS News) If there was a question about whether we’re headed for a second housing shock, that was settled last week with news that home prices have fallen a sixth consecutive month. Values are nearly back to levels of the Great Recession. One thing weighing on the economy is the huge number of foreclosed houses.

Read More

Copyright
, All rights reserved.
Facebook