What Are The Good and Bad of Chapter 13?
A payment plan (Chapter 13) allows you to make payments to your creditors through the court for five years. If you have a steady income, for example, you can catch up missed payments on a mortgage on your home or on the financing on your vehicle. The first challenge is creating a payment plan that will accomplish your financial goals and will convince the federal bankruptcy judge that it really is your best effort. If the judge accepts your proposal, you can keep your home or vehicle, and your plan creditors must wait for their payments from the court. After the court confirms your plan, the second challenge is sticking to your plan schedule, making your payments faithfully for five, long years. Some people make their payments themselves, but the court can order that your plan payments be deducted from your salary or payroll check at work.
