What Is A Chapter 13 Bankruptcy?
Chapter 13 is the debt repayment chapter for individuals with regular income whose debts do not exceed $1,000,000 ($250,000 in unsecured debts and $750,000 in secured debts), including individuals who operate businesses as sole proprietorships. It is not available to corporations or partnerships. Chapter 13 generally permits individuals to keep their property by repaying creditors out of their future income. Each Chapter 13 debtor proposes a repayment plan that must be approved by the court. The amounts set forth in the plan must be paid to the Chapter 13 trustee who distributes the funds for a small fee. Many debts that cannot be discharged can still be paid over time in a chapter 13 plan. After completion of payments under the plan, Chapter 13 debtors receive a discharge of most debts.
Other Types of Bankruptcy FAQs
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Q:
What is a Chapter 7 bankruptcy?
A: Chapter 7 is the liquidation chapter of the Bankruptcy Code. Chapter 7 cases are commonly referred to as straight bankruptcy or liquidation cases, and may be filed by … More -
Q:
What Is A Chapter 11 Bankruptcy?
A: Chapter 11 is the reorganization chapter available to businesses and individuals that have substantial assets and/or income to restructure and repay their debts. … More -
Q:
What Is A Chapter 12 Bankruptcy?
A: Chapter 12 offers bankruptcy relief to those who qualify as family farmers. There are debt limitations for Chapter 12, and a certain portion of the debtor`s income … More -
Q:
What Is A Chapter 9 Bankruptcy?
A: Chapter 9 is only for municipalities and governmental units, such as schools, water districts, some utility companies and other similar organizations. -
Q:
What Chapter Should I File Under?
A: Your particular circumstances will determine the best chapter for you to file under. Choosing the appropriate chapter is very important. The decision whether to file a … More
