Chapter 13
Chapter 13 reorganization bankruptcy is a court monitored repayment plan that requires you to use your own income to repay your debt. Filing chapter 13 puts a stop to creditors, but you have to show the court that you are able to make your payments. You may not be eligible for chapter 13 if your income is too low or inconsistent. This also allows you to keep hold of your possessions such as your house and vehicles. Some people file a chapter 13 in place of a chapter 7 if they don’t qualify for a chapter 13, which is a fresh start bankruptcy where most of your debts are cleared but you may have to give up property or possesions.
The Chapter 13 process can go on for 3 to 5 years. This type of bankruptcy can be used to repay your debt on your home mortgage over time which will stop an impending foreclosure.
Chapter 13 cases can be quite complex so the assistance of an experienced attorney is always required.
Cascade Bankruptcy · 