Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to reorganize their debts and repay them over a period of three to five years. Chapter 13 bankruptcy is a good option for people who have a regular income and who want to keep their assets, such as their home and car.
To file for Chapter 13 bankruptcy, you must meet certain requirements, including:
- You must have a regular income. //ordinarylaw.com/
- Your total debts must be less than $1.25 million for secured debts and $487,550 for unsecured debts.
- You must be able to develop a repayment plan that pays back all of your unsecured debts in full and at least a portion of your secured debts.
If you meet the requirements for Chapter 13 bankruptcy, you will need to file a petition with the bankruptcy court. The petition will list your assets, debts, and income. You will also need to develop a repayment plan. The repayment plan will be based on your income and expenses, and it will outline how you will repay your debts over the next three to five years.
Once you have filed your petition and repayment plan, the bankruptcy court will hold a hearing to review your case. If the court approves your plan, you will be placed under a bankruptcy order. This order will protect you from creditors while you are repaying your debts.
During the bankruptcy period, you will need to make regular payments to your bankruptcy trustee. The trustee will then distribute the payments to your creditors. Once you have completed your repayment plan, you will receive a discharge of your debts. This means that you will no longer be legally obligated to pay the debts that were included in your bankruptcy filing.
Chapter 13 bankruptcy can be a complex process, but it can be a great way to get back on your feet financially. If you are considering Chapter 13 bankruptcy, it is important to consult with an experienced bankruptcy lawyer. A bankruptcy lawyer can help you understand the process and can help you develop a repayment plan that meets your needs.
Here are some of the benefits of filing for Chapter 13 bankruptcy:
- You can keep your assets, such as your home and car.
- You can stop foreclosure and repossession proceedings.
- You can reduce or eliminate your monthly debt payments.
- You can get a discharge of your debts at the end of the bankruptcy period.
If you are struggling with debt, Chapter 13 bankruptcy may be a good option for you. To learn more, consult with an experienced bankruptcy lawyer.