A Chapter 13 bankruptcy, often referred to as a "reorganization," involves a repayment plan that sets forth with specificity how debtors will settle their debts over three to five years. The minimum amount of payment required depends on the debtor's income, balance, and the amount that unsecured lenders would have been paid if the debtor had filed for Chapter 7 bankruptcy. A Chapter 13 bankruptcy may restructure the debt in a plan which is manageable to repay the debt.
The debt to be paid back may be less than what is currently owed. In a Chapter 13 bankruptcy, a debtor proposes a repayment plan to the creditors over a three-to-five year period, offering a good faith proposal to pay all or part of the debt.
Preventing The Foreclosure Of Your Home
Preventing The Repossession Of Your Car
Catching Up Delinquent Car or Mortgage Payments
Stopping Wage Garnishments
Helping Pay Back Taxes
Stopping Interest From Accruing On Your Tax Debt (Local, State Or Federal)
Keeping Valuable Property Which Is Nonexempt In A Bankruptcy
Managing Other Financial Situations
A person who files Chapter 13 bankruptcy are individuals who seek to hold on to possessions such as a home, vehicles, or other property or assets.
In Chapter 13, there are two kinds of assets: assets that the individual owns free and clear and assets that secured creditors have security interests in. A person who completes Chapter 13 will not have to give up any owned, free and clear property. An individual also will likely be able to keep secured property, such as a house or car if they can propose a Chapter 13 plan that will provide for payment of the asset.
Pursuant to BAPCPA "We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code."
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