Chapter 13

A Chapter 13 Bankruptcy is a Court ordered, Court supervised repayment plan.  The Debtor and his or her attorney prepare a Chapter 13 Plan and submit the Plan to the Court for approval.  The Court appoints a Trustee to receive payments form the Debtor, and distribute payments to the creditors.  The Trustee also ensures that the Plan properly deals with the creditors, and is vested with many powers and duties.

The basic terms of the Plan are as follows:

1. Pay all or most of total debts within a period of 36-60 months

2.  Make regular payments to the Chapter 13 Trustee, usually through wage assignment.

3.  Deal with secured debts, unsecured debts, and certain other debts, like taxes, etc.

Debtors in Chapter 13 receive the benefit of the Automatic Stay from the moment of filing the petition, as well as the stopping of all interest on unsecured debts, ie credit cards.  In some instances debtors are able to reduce the overall debt through a Chapter 13, as well as surrender secured property and discharge any remaining difference. 

Call or email Purple Law Firm to schedule a consultation.  Our team will work with you to determine your needs, and help you to make the necessary decisions

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The contents of this page are for general informational purposes and is not intended as legal advice, nor does it establish an attorney-client relationship.  To receive legal advice from Purple Law Firm call or email for an appointment with one of our Chapter 13 bankruptcy attorneys.

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