Chapter 13 Bankruptcy
Chapter 13 Bankruptcy
There are a number of different types of bankruptcy that a person can
file for. Chapter 13 bankruptcy is specifically designed for people who
have got intomore debt than they can handle but have a regular source
of income. A chapter 13 bankruptcy does not remove your debts, it
simply allows you to work out a way to repay most of it.
To be able to file a Chapter 13 bankruptcy your debts must be within
certain limits. At the time of writing this article, your secured debts must
be less than $922,975 and your unsecured debts less than $307,675 to
qualify for chapter 13 bankruptcy.
The idea of a chapter 13 bankruptcy is that you file a proposal for a
repayment plan, detailing the repayments that you will make. The
timescale in which you repay your debts is usually up to 5 years and the
actual repayment schedule depends on how much your unsecured
creditors would have received if you sold all of your assets. This means
that you can actually reduce the amount you pay by assessing the
current value of your property, not their original purchase price.