Chapter 13 Bankruptcy
Chapter 13 Bankruptcy allows the debtor to create a 3 or 5 year bankruptcy repayment plan to restructure their debt payments.
Chapter 13 Bankruptcy
Chapter 13 Bankruptcy allows any individual to file for bankruptcy protection if their unsecured debts are less than $360,475 and their secured debts are less than $1,081,400 (11 U.S.C. § 109(e)).
When the debtor files Chapter 13 Bankruptcy a trustee is appointed to administer the case. Administration functions will include collecting debt payments from the debtor and redistributing those payments to the creditor, in priority order, determined by bankruptcy law.
Chapter 13 Bankruptcy allows debtors to keep many of their assets. After the bankruptcy petition is filed an automatic stay is initiated which stops, at least for a time, most collection actions against the debtor or the debtor's property.
Foreclosure can also be stopped by filing Chapter 13 Bankruptcy, however, there are specific cases where home foreclosure can occur, specifically if the mortgage company completes the foreclosure sale under state law before the debtor files the petition or the home owner does not make regular mortgage payments which are due after the Chapter 13 Bankruptcy filing. Other creditors are not allowed to continue or start lawsuits, wage garnishments or creditor collection actions under an automatic stay (unless authorized by the bankruptcy court).
More Help on Chapter 13 Bankruptcy
- Automatic Stay - If a petition is filed under Chapter 7, Chapter 11 or Chapter 13 Bankruptcy Section 362(a) of the Bankruptcy Code, it initiates an automatic stay which is basically an injunction against creditors to cease any activities which advance the interest of the creditor against the debtor. - read more
- Liquidation - Chapter 7 Bankruptcy is known as a \"liquidation\" bankruptcy and creditors will be paid from the liquidation of the debtor\'s assets. - read more
- Secured Debt - Secured debt is any type of debt which is backed by collateral or something of value which can guarantee the secured lender that the amount of the loan can be repaid or the item of value can be repossessed to pay the loan. - read more
- Trustee - The bankruptcy trustee program, created by the United States Department of Justice, manages and oversees the bankruptcy process to improve efficiency and guarantee the integrity of the bankruptcy system. - read more
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