Chapter 13 Bankruptcy Defined and Explained – Community Legal Services

It is possible to create a payment plan that allows the repayment of your debts over 3 to 5 years. Chapter 13 requires that debtors, those who file for bankruptcy, to present the repayment plan. The repayment plan must include any disposable income, which is what expects to receive in the coming three to five years.
When the debtor is ready to propose an arrangement for repayment the creditors have an opportunity to oppose the repayment plan. The court is likely to approve the repayment plan if there aren’t other issues. If the court accepts the arrangement, the debtor has to complete the payments in a timely manner and completely. If they don’t the required payments, they will be denied bankruptcy defenses. Even though some people might not qualify for Chapter 13, there are many advantages to consider making Chapter 13 a viable option. mmyaf86a3z.