What is Chapter 13 Bankruptcy?
Written by Emil Fleysher | August 27, 2014 | Bankruptcy
If your debts are getting out of your control but your income is still more than the median of the state and you have been living in the same state for the past two years, you can still file for bankruptcy. A Chapter 13 bankruptcy was put in place for those who still have some “disposable” income after paying all their expenses and/or for those who’d like to keep the property that they would otherwise lose if they filed for Chapter 7. A form is completed to determine if the amount of “disposable” income is equal to or less than the states median, how much is actually left, and whether a 3 year plan or a 5 year plan will be implemented.
Once a timeline plan has been chosen, a repayment plan is then hatched. To construct a repayment plan, you most show that you can stay on top of your secured debts, such as mortgage, car note or domestic support obligation, while still paying off your unsecured debtors the value of the properties that you would of otherwise had lost in a chapter 7 bankruptcy case. You must also be up to date with all of your tax filings. If you are not current with your tax filings, you must first complete that before continuing to file bankruptcy. When the proposed repayment plan has been accepted, a bankruptcy judge will then confirm it and it is now up to you to follow through with the plan.
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