Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

Jan 03

Chapter 13 bankruptcy is an option where you are given the chance to keep your properties, but in return you have to reorganize your debts in order to draft a payment scheme that you will adhere for a certain amount of time, say three to five years. This form of bankruptcy is not for everyone, as it requires you to use your own income to repay parts of your debt, thus it is important for you to prove in the court that you have the ability (and income) to keep up with your payment responsibilities.

Repayment plan is the most important aspect of Chapter 13 bankruptcy. This will plan out how much you will pay for each debt, as well as the way you will pay them. It will be up to you and the courts to determine your repayment plan, and this will also depend on you income and the debts you have. If have stumbled upon an issue where you are unable to pay for your debts, you will be given an option to modify your plan or ask the court to have some of your debts discharged, otherwise you might convert to a Chapter 7 bankruptcy.

After completion of your repayment for Chapter 13 bankruptcy, you will have to provide evidence that you are up-to-date with your alimony or child support obligations and have attended and completed a budget counseling course (form an approved US Trustee) in order to receive a bankruptcy discharge.

1 comment

  1. Your blog is improperly displaying characters when I use Ubunto with Google Chrome. Just thought you should know!

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