Chapter 13 bankruptcy is a type of bankruptcy that allows people to repay their debts over a period of three to five years. It is also known as a wage earner’s bankruptcy, because it is designed for people who have regular income.
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To qualify for Chapter 13 bankruptcy, you must have regular income and be able to afford to make monthly payments to your creditors.
All unsecured debts, such as https://www.lawhints.com/ credit card debt, medical debt, and personal loans, are dischargeable in Chapter 13 bankruptcy. Secured debts, such as mortgages and car loans, are also dischargeable in Chapter 13 bankruptcy, but you must make payments on these debts in order to keep your property.
The first step in Chapter 13 bankruptcy is to file a petition with the bankruptcy court. The petition will list your assets, debts, and income.
Once you have filed the petition, you will meet with a trustee. The trustee is a court-appointed official who will oversee your case. The trustee will review your finances and help you to create a repayment plan.
Your repayment plan will outline how much money you will pay to your creditors each month and how long your bankruptcy will last. Your repayment plan must be approved by the bankruptcy court.
Once your repayment plan is approved, you will start making payments to the trustee. The trustee will distribute the payments to your creditors.
After you have completed your repayment plan, your remaining debts will be discharged.
Chapter 13 bankruptcy can provide people with a number of benefits, including:
Chapter 13 bankruptcy also has some drawbacks, including:
Chapter 13 bankruptcy can be a good option for people who want to repay their debts over time and keep their property. However, it is important to weigh the benefits and drawbacks of Chapter 13 bankruptcy before filing. You should also speak to a qualified bankruptcy lawyer to discuss your options.
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