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After the repayment plan is filed the debtor's
creditors will have an opportunity to object
to the proposed plan. This process is called
a confirmation hearing which is heard before
a judge. The attorney will appear before the
judge on behalf of the debtor. The judge will
confirm the plan if the debtor is current with
their payments and if the trustee and any creditor
problems are resolved. After the plan is confirmed,
if the debtor simply makes all the required
monthly payments, then they will receive their
discharge.
This whole process is very complicated and recommended the debtor has the advice of a good attorney. Take our Free online Bankruptcy Evaluation to have an attorney see if Chapter 13 Bankruptcy is right for you.
Also see >> Finding a Bankruptcy Attorney
In order to file Chapter 13 the debtor must be able to pay monthly living expenses and pay the trustee to consolidate the debt. In order to make these payments the debtor must have a consistent source of income or at least reasonable prospects of future income. Just like in a Chapter 7 Bankruptcy, the individual must live, reside, be domicile, or have a place of business in the United States. Additional, the debtor must have a regular source of income and the amount of their debt may not exceed a certain amount.
What does it mean to have a regular source of income? According to the Bankruptcy Code, "any individual whose income is sufficiently stable and regular to enable such individual to make payments under a plan under Chapter 13 Bankruptcy." is considered to have a regular source of income.
Although the limits of debt will not apply to most citizens, (the limits are extremely high), it is noteworthy to know the figures. The amounts of debt are different every year. The amount is based on and subject to the inflation adjustment provided in the Bankruptcy Code. Consulting an attorney is the best way to know if you are eligible for Chapter 13 bankruptcy.
If you meet all of the requirements listed above and you are tired of the daily harassment from creditors Chapter 13 may be the answer.
Also see >> Free online Bankruptcy Evaluation by a Lawyer
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