What are the goals of a Chapter 13 bankruptcy?
A. A bankruptcy under Chapter 13 is a structured repayment plan designed to save your house from foreclosure, other property from repossession, or (in some instances) to lower your payments on existing debts. Q. What is a discharge? A. A discharge of a debt means you are no longer liable for that debt. Under Chapter 13, you generally must complete your court-approved repayment plan in order to obtain a discharge. Q. Do I have to repay all my debts in full? A. According to the Bankruptcy Code, your “plan need not pay unsecured claims in full as long as it provides that the debtor will pay all projected ‘disposable income’ over an ‘applicable commitment period,’ and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtor’s assets were liquidated under Chapter 7.” (11 U.S.C. ยง 1325) Q. What is considered “disposable income”? A. “In chapter 13, ‘disposable income’ is income (other than child support payments received by the debtor) less am
