Chapter 13 Bankruptcy
Chapter 13
Chapter 13 bankruptcy is often referred to as “reorganization bankruptcy.” Many people file a Chapter 13 bankruptcy to halt foreclosures or repossessions.
Examples of other reasons why people file Chapter 13 and not Chapter 7 are: to protect an asset that would otherwise not be protected, ineligibility to file again because of a recent discharge, or ineligibility because the debtor doesn’t qualify.
There are other significant benefits to filing a Chapter 13 bankruptcy that the Law Firm of Teresa C. Edwards will be happy to discuss with you.
For Chapter 13 relief, you must earn wages or have some other source of regular income and you must agree to pay part of your income to your creditors through a repayment plan. However, the amount you pay to your creditors will for most people be only a fraction of your total amount of debt.
The court must approve your repayment plan and your budget. A trustee is appointed and will collect the payments from you, pay your creditors, and make sure you live up to the terms of your repayment plan.
The plan will last not less than 3 years and up to 5 years. After you complete the plan, you will receive your discharge. Although what can be discharged in a Chapter 13 is slightly broader than what is dischargeable in a Chapter 7 bankruptcy, some things that can’t still be discharged are child support, alimony, and most student loans.
Call Teresa C. Edwards for a free consultation at 202-486-1258.