A chapter 13 is bankruptcy but it is a plan in which to help us keep cars or houses that we have fallen behind on. Along with that taking care of any unsecured debts like credit cards and medical bills.
With the chapter 13 it has its limits of amounts of debts that you can have unlike a chapter 7 the amount of unsecured debts is unlimited.
The chapter 13 if you have more than 930,000 dollars in secured debts example you own several rental homes that total up to a million dollars, then you can not file a chapter 13. The same goes for if you have more than 330,000 of unsecured you can not file a chapter 13.
They couple I talked to yesterday Had million and a half dollars of rental properties and only about 6o thousand of credit cards. Over the last six months several of the renters had stop paying their rent, because of this they could not pay the mortgage payments they needed to pay.
Because of the amount of property they own they need to go talk to a chapter 11 bankruptcy attorney. The chapter 11 will do the same as a chapter 13 helping them get caught up on the mortgage payments and pay on their credit card debts.
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