What Is A Chapter 13 Bankruptcy?

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What Is A Chapter 13 Bankruptcy?

Under a chapter 13 bankruptcy, a debtor proposes a 35 year repayment plan to the creditors offering to pay off all or part of the debts from the debtors` future income.

The amount to be repaid is determined by several factors including the debtors` disposable income. To file under this chapter you must have a regular source of income and have some disposable income. Like in a Chapter 7, corporations and partnerships may not file under this chapter.

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