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What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy which involves a payment plan established by the bankruptcy court and you and allows for the ordering payoff of your debt. After the court consolidates the petitioner’s debts and considers the debtor’s financial ability to make payments, it orders monthly payments. During the repayment period, the debtor is allowed to continue collecting his or her regular sources of income and may also retain ownership of property. Because of this, Chapter 13 bankruptcy is also known as a “wage earner’s plan.” Most payment plans under Chapter 13 bankruptcy filings are quite affordable for the debtor. At the end of the plan, most of the debtors unsecured debt is discharged (wiped out),

Barry Rosenzweig
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Barry Rosenzweig, has 25 years experience as an attorney helping clients solve their legal problems.