How is a Chapter 13 bankruptcy beneficial for a debtor?
A Chapter 13 bankruptcy is very beneficial to the debtor in those situations where an asset or assets need to be protected, such as when a house is in foreclosure or a car is out for repossession. The Chapter 13 bankruptcy will immediately stop the foreclosure or repossession and all the past due amounts may be put into the Chapter 13 plan and be paid over a 3 to 5 year period. Also, if you make too much income, you may not qualify for a Chapter 7. In this situation the court will require that you pay back a portion or all of your debt. In a Chapter 13 bankruptcy, a payment plan is approved by the court. The debtor will make monthly payments to a court appointed trustee. The debtor will be required to pay back some or all of your debts over a three to a five year period. The amount of the payment is based on the amount of your income and expenses, and in some cases is as low as $100 per month regardless of the amount of debt that you have. Chapter 13 can also stop repossessions or fore
