Chapter 11 & 13 Bankruptcy

What is Chapter 13 Bankruptcy?

A chapter 13 bankruptcy is a reorganization bankruptcy. Under chapter 13, a debtor is given a period of three to five years to repay their debts and catch up on missed payments. The debtor makes one monthly payment to the bankruptcy trustee, who distributes payment to the creditors. Generally, upon the completion of the repayment period, any remaining debt under the plan is discharged.

Reasons Why You Might Select a Chapter 13 Bankruptcy:

You want to repay your debts.
You do not qualify for a chapter 7 bankruptcy.
You have valuable non-exempt assets that you want to keep.
You want time to catch up on missed house or car payments.

To Qualify for a Chapter 13 Bankruptcy:

Reside in the United States.
Have a regular income.
Unsecured debt less than $360,475.
Secured debt less than 1,081,400.
Complete approved credit counseling course.

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