Chapter 13 Bankruptcy

Filing for Chapter 13 bankruptcy is a major decision – one that will impact your future for years to come. Though bankruptcy certainly has its share of benefits, it’s essential you obtain a basic understanding of the process prior to filing. In the following entry, a bankruptcy attorney from Sam Turco Law Offices outlines a few common Chapter 13 bankruptcy FAQs.

Chapter 13 Bankruptcy FAQs
What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy allows you to repay a portion or all of your debts under the protection and supervision of the bankruptcy court. When filing, you will submit a repayment plan to the court for approval. The plan will detail a payment schedule over a period of 3-5 years to be paid to a Chapter 13 trustee. The trustee serves as a middleman, collecting payments and distributing them to creditors. Once debts have been satisfied according to the repayment plan, the debtor is discharged of any further liability. …show more content…
A major benefit of Chapter 13 bankruptcy is that is allows you to retain all of your property. In exchange, you must repay all or some of the debt you owe. In Chapter 7, debts are typically repaid through asset liquidation, meaning that nonexempt property will be sold to satisfy your