WHAT IS A DEBT CONSOLIDATION PLAN?
A debt consolidation plan is a bankruptcy under Chapter 13 of the Bankruptcy Code. Unlike the Chapter 7, in a Chapter13, you agree to pay off your bills, over 36 months or longer. By this process, taxes and other debts can be paid off and you can keep all of your property. Homeowners can use Chapter 13 to make up missed mortgage payments. One payment is made each month to cover all, or a portion of, your bills and this payment is paid each month to the Chapter 13 Trustee for the length of the Plan, which is usually 36 months. • WHO CAN FILE BANKRUPTCY? Any person who resides in, does business in, or has property in this country can file bankruptcy. It is not necessary that your debts be greater than your assets to file, although as a practical matter, it is seldom wise to do so unless your debts are greater than your assets. • WHAT IS THE ORIGIN OF BANKRUPTCY LAW? The Bankruptcy Code has its beginnings in the Bible. See Deuteronomy, Chapter 15, verses1-5. It is now federal law. • CAN B
