BETTER TIMES AHEAD: LEARN ABOUT CHAPTER 13 BANKRUPTCY
Chapter 13 Bankruptcy is also known as a “Wage Earners Plan”.
It grants a debtor, with regular income, protection from creditors. The debtor is allowed to develop a plan to repay all or parts of their debts. The repayment plan can last between 3 to 5 years. Payment plans must be completed in 5 years. During this time the debtor is protected from creditors starting or continuing collection efforts.
The court will assign an impartial trustee to administer the case. The trustee evaluates the case, approves the payment plan as brought forth by the debtor, and serves as the agent that collects the funds from the debtor and pays the creditor.
Save Your Home
Filling a chapter 13 allows individuals to stop foreclosure proceedings on their primary residence and grants them the ability to pay delinquent mortgage payments over time. As long as you continue to make all mortgage payments on time.
Your payment plan will be based on what you make and not what you owe. It will stop late fees and added penalties. Once the court confirm the plan, it is up to the debtor to make the plan a success.
Chapter 13 provides protection to co-debtors. The creditors cannot pursue to collect on a debt from individuals that co-signed for you.
It is available to:
- Married Couples
Talk with a bankruptcy attorney that specializes in filing chapter 13 bankruptcy.