Debt repayment plans should be reviewed with the help of a bankruptcy lawyer but can generally consolidate the following: student loan payments, credit card payments, personal loans, mortgage loans and vehicle loan payments. The Bankruptcy Court will require the debtor to have a source of income which they can use to meet the obligations of their Chapter 13 Bankruptcy repayment plan. Another benefit of filing Chapter 13 Bankruptcy and creating a debt repayment plan is it can stop a home foreclosure and allow the debtor to make consolidate outstanding mortgage payments.
The bankruptcy repayment plan does not replace current mortgage payments which must be made to the mortgage company. Creating a bankruptcy repayment plan and filing Chapter 13 Bankruptcy also can stop harassing creditor calls, wage garnishments, bank account levies and personal property repossession.
Chapter 13 Bankruptcy discharge is allowed if:
After the Chapter 13 Bankruptcy plan is completed and the discharge is given the debtor is released from the debts which were outlined in the plan or disallowed (exceptions may exist). The creditors who were paid under the Chapter 13 Bankruptcy plan are barred from continuing their debt collect or legal actions to recover the discharged debts.