Chapter 13 bankruptcy is a type of bankruptcy that allows individuals with a regular income to create a repayment plan to pay off all or a portion of their debts over a period of three to five years. It is also known as a "wage earner's plan" because it is typically used by people who have a steady income, but are struggling to keep up with their debts.
To file for Chapter 13 bankruptcy, you must have a regular source of income and your unsecured debts must be less than $419,275 and your secured debts must be less than $1,257,850. You will also need to complete credit counseling before filing, and meet other requirements outlined in the bankruptcy code.
Once you file for Chapter 13 bankruptcy, an automatic stay goes into effect, which stops most collection activities by creditors, including foreclosure proceedings. You will then work with a bankruptcy trustee to create a repayment plan that fits your budget and meets the requirements of the bankruptcy code. Your plan must be approved by the bankruptcy court and will typically last three to five years.
During the repayment period, you will make payments to the bankruptcy trustee, who will distribute the funds to your creditors according to your plan. At the end of the repayment period, any remaining eligible debts are typically discharged, although there are some exceptions, such as certain tax debts and student loans.
Chapter 13 bankruptcy can be a complex process, and it is highly recommended that you work with a qualified bankruptcy attorney to guide you through the process and ensure that your rights and interests are protected.
It is important to work with a qualified bankruptcy attorney who can help you. If you are interested in filing bankruptcy please contact Hishaw Law LLC at 1.307.228.0407 if your located within the state of Wyoming or 1.704.218.9883 if you live in the Charlotte, North Carolina area.
