What is a chapter 13 bankruptcy case and how does it work?
In a Chapter 13 case, the debtor proposes a plan to repay all or a portion of his or her debts under the supervision and protection of the Bankruptcy Court. The Plan must be approved by the Court to become effective. If the Court approves the debtor’s plan, most creditors will be prohibited from collecting their claims from the debtor. Under the Plan the debtor makes regular payments to a person called the “Chapter 13 Trustee,” who collects the money paid by the debtor and disburses it to creditors in the manner called for in the Plan. Upon completion of the Plan payments, the debtor is released from liability for the remainder of his or her dischargeable debts. Most Chapter 13 Plans require payments for sixty (60) months, or until all unsecured debts are paid in full, whichever happens first. A Chapter 13 case normally lasts much longer than a Chapter 7 case and is usually more expensive for the debtor.
A Chapter 13 bankruptcy case is a proceeding under federal law which the debtor seeks relief under Chapter 13 of the Bankruptcy Code. Chapter 13 is the Chapter of the Bankruptcy Code which allows a person to repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. The Bankruptcy Code is the federal law that deals with bankruptcy. A person who files a Chapter 13 case is called a debtor. In a Chapter 13 case, the debtor must submit to the court a plan for the repayment of all or a portion of his or her debts. The plan must be approved by the court to become effective. If the court approves the debtor’s plan, most creditors will be prohibited from collecting their claims from the debtor. The debtor must make regular payments to a person called the Chapter 13 trustee, who collects the money paid by the debtor and disburses it to creditors in the manner called for in the plan.
A chapter 13 bankruptcy case is a proceeding under federal law in which the debtor seeks relief under chapter 13 of the Bankruptcy Code. Chapter 13 is the chapter of the Bankruptcy Code, which allows a person to repay all or a portion of his or her debts under the supervision and protection of the bankruptcy court. The Bankruptcy Code is the federal law that deals with bankruptcy. A person who files a chapter 13 case is called a debtor. In a chapter 13 case, the debtor must submit to the court a plan for the repayment of all or a portion of his or her debts. The plan must be approved by the court to become effective. If the court approves the debtor’s plan, most creditors will be prohibited from collecting their claims from the debtor. The debtor must make regular payments to a person called the chapter 13 trustee, who collects the money paid by the debtor and disburses it to creditors in the manner called for in the plan.
In Chapter 13 Debtors submit a plan for the repayment of all or a portion of their debts. The plan must be approved by the court to become effective. Once a Debtor’s plan is approved (confirmed), the Debtor makes regular payments to the Chapter 13 Trustee who then disburses the money to creditors in the manner called for in the plan. Upon completion of the payments called for in the plan, the Debtor is released from liability for the remainder of his or her dischargeable debts.
Related Questions
- I filed a Chapter 7 Bankruptcy case within the last 8 years, but again or still have debt I need help with. Can I file a Chapter 13?
- What is a consumer bankruptcy case? What are the differences between Chapter 7 and Chapter 13?
- What is the difference between a Chapter 7 bankruptcy case and a Chapter 13 bankruptcy case?
