Frequently Asked Questions

Chapter 13 Summary

Chapter 13 bankruptcy allows a person to consolidate debt while making convenient, monthly payments to a trustee. A payment plan is proposed which repays the debt over a three to five year period. The amount of the monthly payment and the length of the repayment plan are based upon the following factors:
· Monthly income of the person
· Monthly expenses of the person
· Amount and nature of the debt
· Amount of non-exempt property owned
The most common uses of Chapter 13 involve:
· Repayment of mortgage arrears (back amounts owed)
· Restructuring of auto loans to save a vehicle
· Payment of non-dischargeble taxes, without interest or penalties
Secured debts are paid 100% on the dollar, while unsecured debts may be paid less than 100% on the dollar. A person receives a discharge under Chapter 13 once the payment plan is completed.

More FAQs:

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Who can file for bankruptcy protection? [Answer]

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Does the "new" bankruptcy legislation mean that people can no longer file a Chapter 7 Bankruptcy? [Answer]

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Can I file for bankruptcy protection if I own a business? [Answer]

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Can a bankruptcy filing stop creditors from suing me or calling on the telephone? [Answer]

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How can I get more information? [Answer]

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Will I still owe taxes after filing bankruptcy? [Answer]

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Chapter 7 Summary [Answer]

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If I file bankruptcy, can I keep my house or my car? [Answer]

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Can I file bankruptcy with my spouse? [Answer]

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What kind of bankruptcy protection is available? [Answer]

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Legal Disclaimer
The information provided on this site is not intended to be legal advice, but merely conveys general information related to legal issues commonly encountered. By accessing the information on this site, no attorney-client relationship is created.