28 Mar


When filing for chapter 13 bankruptcy, it is important to be completely aware of what this process entails. Title 11 of the United States Code set forth the particular laws governing the different types of bankruptcy throughout the country. Chapter 13 bankruptcy is used when a person is unable to come up with enough money to pay all of his or her debts, but does not have enough money to file for personal bankruptcy. If you are facing this situation then it is important to understand this type of bankruptcy law as much as possible. Check out the qualifications for bankruptcy chapter 13 on this page.


The most typical requirement to file for chapter 13 bankruptcy is that you must be unable to pay your debts within five years. However, this requirement does not apply to all debts. The other types of debts are eligible for chapter 13 bankruptcy only if you have been making payments on these debts for five years or more. It is also not necessary to be delinquent on any of your other debts.
There are two types of options available when filing for chapter 13 bankruptcy. One type covers reorganization plans. Under reorganization plans, your creditors will sell the debt you have to them and distribute the debt as part of a repayment plan. With this plan, you will make one lump sum payment to the lender, who will distribute the remaining debts as outlined in your reorganization plan. This type of plan can be very helpful, especially if you have multiple debts that are difficult to manage.
Another option available to you when filing for chapter 13 bankruptcy is a discharged repayment plan. As the name implies, this plan allows you to make payments toward your debts in exchange for a discharge of your bankruptcy. For example, let's say you have an owed loan of $5k that was previously paid off. You may be eligible to have your loan discharged. If you do have this owed loan discharged, then you would be in a better position financially because you would only be responsible for paying back the loan that remained after you filed for chapter 13 bankruptcy


In order to determine which plan is best for you, it is important to understand the different types of chapter 13 bankruptcy discharge. The most common is the non-recourse or non-priority unsecured debts. Non-recourse debts include your medical bills, personal loans, credit card bills, and collection accounts. Other non-priority unsecured debts include student loans, IRS tax obligations, and utility payments. Remember, once your bankruptcy is filed, you lose any right to collect any of your non-priority unsecured debts except those which are directly tied to your financial success and assets. However, keep in mind that some of your creditors may be willing to work with you in order to restructure your obligations so you may be able to continue making payments toward your remaining debts.


The most common type of chapter 13 bankruptcy is the repayment plan. This plan allows you to repay your debts in affordable monthly installments over a designated time period. Typically, this time frame is between one and five years, although it could be longer if your financial circumstances change dramatically. Another common type of chapter 13 bankruptcy is the property-based repayment plan. This occurs when you sell your home, real estate, automobile, or other property and distribute the proceeds between your creditors. If you want to know more about this topic, then click here:  https://en.wikipedia.org/wiki/History_of_bankruptcy_law.

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