|
The purpose behind Chapter 13
Bankruptcy filing is rehabilitation of the debtor.
Meaning you are given the opportunity
to repay some or all of your debts, but under generally better terms
(lower or no interest). Rather than having to liquidate assets to pay
off debts, this process is designed to allow the debtor to use future
income to pay off creditors.
Chapter 13 Bankruptcy is basically an
adjustment or reduction of debts for a debtor with regular income.
The United States Bankruptcy Code provides the debtor an opportunity
to pay back their creditors over a period of time of up to five years.
This process is completely supervised by the court. Your attorney will
ensure that your interests will be protected.
Chapter 13 Bankruptcy allows the debtor to keep all
of their property.
However, an interest-free plan
for repayment must be developed and approved by the court. The debtor
begins to make payments within thirty to forty-five days after the
case has begun.
Unlike Chapter 7 Bankruptcy, the
payments are made to the trustee who will then pay the appropriate
creditors.
Chapter 13 Bankruptcy prevents
creditors from collecting from the debtor. The creditors are required
by law to strictly follow the terms of the repayment plan
Learn more about
Filing for Chapter 13 Bankruptcy |
