A Chapter 13 Bankruptcy is often considered a reorganization bankruptcy due to the fact that the debtor is attempting to reorganize their debts by offering the creditor partial or full repayment through a repayment plan. The repayment period will depend on your income, expenses, and the amount of debt that you will need to repay. The typical repayment plan is 3-5 years. This type of bankruptcy is often called a “payment plan” bankruptcy. Again, this is usually a partial or full repayment plan, meaning you may not have to repay all of your debts.
In short, what happens is the debtor must pay a bankruptcy trustee all of their monthly disposable income for the next three to five years, and the trustee uses the funds to pay the debtor’s creditors. Then after the three to five years are up, all of the debtor’s dischargeable debt is discharged.
There are some benefits to filing a Chapter 13 Bankruptcy, and the benefits are as follows.
Although there are memories and sentimental attachments to your home, it may be a better financial decision to walk away from the home and purchase one when you can better afford it.
To learn more about the Chapter 13 Bankruptcy process, click here!
Please feel free to contact us today so that we may discuss the options that are available to you.
Call Van Law Firm at 702-529-1011.