Nevada Bankruptcy Attorneys

  

What is Chapter 13?

• Chapter 13 is often referred to as “reorganization” or “consumer reorganization”.
• Chapter 13 is often selected by debtors who have valuable assets, such as their home and home equity, that is not covered by exemptions and that they want to   keep.
• In Chapter 13, a debtor creates a “plan” in which they will repay creditors via a trustee over a set time period, generally three to five years.
• A confirmation hearing is held in which the court will either approve or disapprove of the plan.
• In this plan period, the debtor will pay creditors overdue payments on assets and pay into the plan the equivalent value of any assets not covered by exemptions.
• Chapter 13 is a bankruptcy ideal for debtors who are employed and/or have an ongoing source of income to make the scheduled payements as per the plan.
• In Chapter 13, the debtor maintains possession of the property of their estate while they are making the payments for the duration of the plan.
• With Chapter 13, there is no immediate discharge of the debts.  Payments must be completed before the debt is considered discharged.
• While the debtors is making payments on their plan they are protected from garnishments or lawsuits from their creditors.
• Chapter 13 takes a considerable amount of thought and careful planning with a bankruptcy attorney to assist you with weighing the options.

Contact a Florida Bankruptcy Attorney for more information regarding your specific case as these are general bulletpoints on how Chapter 13 typically works.