Chapter 13 bankruptcy is a type of bankruptcy that allows individuals to create a plan to repay their debts over some time. In a Chapter 13 bankruptcy, the debtor submits a plan to the court outlining how much they can afford each month. If the court approves the plan, the debtor must follow it.
Chapter 13 is often preferable to Chapter 7 because it enables you to keep an asset, such as a house, as you repay your debts over time.
To be eligible for Chapter 13 bankruptcy, you must meet the following requirements:
- You must have a regular income.
- You must have unsecured debts of less than $394,725 and secured debts of less than $1,184,200.
- You must be able to make the payments under your proposed repayment plan.
If you are eligible for Chapter 13 bankruptcy, you must file a petition with the bankruptcy court. The petition will include information about your income, expenses, and debts. You will also need to file a repayment plan with the court. Your plan must provide for payments to all of your creditors, including secured creditors and priority creditors. The plan must also provide for a fee to the bankruptcy trustee.
Chapter 13 bankruptcy can be a helpful way to get out of debt and get a fresh start. However, speaking with any bankruptcy attorneys in Gehi & Associates is essential to discuss whether Chapter 13 is the right option for you.
