What Is A Chapter 13 Bankruptcy?

Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Chapter 13 Bankruptcy and other Bankruptcy topics.

What Is a Chapter 13 Bankruptcy?

What Is A Chapter 13 Bankruptcy?

Legal Helpers Tip: Also called a wage earner plan, Chapter 13 bankruptcy allows individuals who have consistent income to create a plan to repay all of their debts or a portion thereof. Usually the debtor will petition creditors to accept installments over a three to five year period. Throughout this time frame, creditors are forbidden from either starting or continuing any collection efforts. Depending on the debtor's income level, the bankruptcy code and rules determines the time period allowed for repayment. There are a number of advantages to selecting a Chapter 13 over a Chapter 7 liquidation. The most significant benefit is saving the debtor's house from foreclosure.



Nobody has commented on this tip yet. Be the first.


URL: (optional)


Not finding the advice and tips you need on this Bankruptcy Tip Site? Request a Tip Now!

Guru Spotlight
William Pirraglia
Buy My Book