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 into more 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.