Chapter 13 Bankcrupy Law  

Chapter 13 bankruptcy is also known as a wage earner's plan. It allows persons with regular income to build up a plan to pay back all or part of their debts. In this chapter, debtors recommend a settlement plan to make installments to creditors over a period of three to five years.

If the debtor's existing monthly income is less than the relevant state medium, the plan will be for three years unless the court agrees a longer period for cause. During this time the law prohibits creditors from beginning or continuing collection efforts.

Chapter 13 proposes persons a chance to save their homes from foreclosure. By filing under this chapter, persons can prevent foreclosure measures and may treat aberrant mortgage payments over time. Nonetheless, they must still make all mortgage payments that come due during the chapter 13 plan on time.

The debtor files a bankruptcy appeal with program of possessions and liabilities and statement of financial affairs, along with a Chapter 13 plan. A trustee is selected to accept payments from the debtor and expend them to creditors. The debtor remains in control of all of his property, exempt and non-exempt. Upon completion of payments under the plan, the debtor usually gets a release, even if he has paid less than 100% of the debt. Creditors will obtain differing amounts of money under a Chapter 13 plan, depending on the nature of the debt. These payments are made by the debtor making payments to the trustee, and the trustee then making payments to the creditors.

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Chapter 13 Bankcrupy Law

How-Are-Judgments-Handled-In-A-Chapter-13-Filing      In Chapter 13 filing, the debtor needs to file a settlement plan with the appeal or within 15 days following the appeal is filed. This can only vary in case the court allows an extension. More..




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