Chapter 13 Bankruptcy...Your Options...

Filing for Chapter 13 Bankruptcy is for individuals who intend to continue to pay off their debts. This usually incorporates better terms and little to no interest charges. Unlike Chapter 7 Bankruptcy where all the debts are liquidated, Chapter 13 will utilize the debtor's regular income to pay off the creditors.

Under the U.S. Bankruptcy Code, the debtor is given up to 5 years to repay the creditors in the filing. While the debtors property is not liquidated, the court administers a new interest free plan for the repayment of the debts. A written plan is drafted to provide details of the repayment. The repayment usually begins within 30-45 days after the case has started. Sometimes the debtor will disburse to a trustee who will take charge of disbursing money to the creditors as per the plan. Other times, the debtor can pay the creditors directly. Regardless of how the plan is set up, the debtor and the creditors must strictly adhere to the terms of the plan. The creditors are prohibited from trying to collect excess sums from the debtor.

Under a Chapter 13 filing, a debtor who manages to complete all necessary payments in the plan is given a full discharge. The repayment plan is set up by the court irregardless of requests by the creditors. To be able to file for a Chapter 13, the debtor must have a regular and continuing income.

When a Chapter 13 Bankruptcy is filed, the following happens:

A.] Determine whether Chapter 13 is the best solution for the debtor.
B.] Prepare a budget.
C.] Examine individual cases to figure out whether Chapter 13 is appropriate or
or whether other alternatives can be explored.
D.] Determine and implement methods of dealing with secured creditors.
E.] Devise a Chapter 13 plan and fill out the forms.
F.] Pay the filing fee and complete the process of filing the forms and pleadings.
G.] Attend whatever meetings you maybe required to attend...i.e. creditors, court
hearings, etc...
H.] Obtain a discharge once the payments have all been made, and the plan terminated.

While this may seem like a simple procedure, in fact it is a rather complicated legal proceeding, and you are best advised to retain an qualified bankruptcy attorney to assist and guide you through this process to ensure that your best interests are protected...this is Empowering...