Chapter 13 Bankruptcy
Chapter 13 bankruptcy is typically called the repayment bankruptcy. It is designed for an individual who has a regular source of income and it is sometimes preferable to a chapter 7 bankruptcy because it enables the debtor to keep an asset by repaying creditors for any arrearage in payments for that asset or by paying any non-exempt portion of that asset. For example, if a debtor is backup up on their mortgage for their house, that arrearage can be paid back through a Chapter 13 bankruptcy plan. Or, if a debtor has a car worth $5,000.00 and only $1,000.00 of that value is exempt, the debtor can elect to pay the difference of $4,000.00 through the bankruptcy plan in order to keep that car. This is done through the Chapter 13 "plan" which lasts three to five years.
Also, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 required debtors that make more than certain income levels to automatically be ineligible for Chapter 7 bankruptcy.
To see if you qualify for a Chapter 13 Bankruptcy you should see a qualified Bankruptcy attorney.
Also, the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 required debtors that make more than certain income levels to automatically be ineligible for Chapter 7 bankruptcy.
To see if you qualify for a Chapter 13 Bankruptcy you should see a qualified Bankruptcy attorney.