HOW DOES CHAPTER 13 BANKRUPTCY WORK?
Chapter 13 bankruptcy enables individuals with regular income to develop and submit a written repayment plan to the court to repay what you can afford to your creditors, including your mortgage, car loans, and other debts. This plan lasts a minimum of 3 years, but can last as long as 5 years. In most cases, you make one payment each month to your chapter 13 trustee, who then disburses these funds to your creditors. Once your plan is completed, you receive a discharge of all debts not repaid under the plan, and except for certain debts which cannot be discharged like taxes, child support, or alimony, and your creditors can no longer chase you for the debt you no longer owe.
WHY FILE CHAPTER 13?
People usually choose to file Chapter 13 for the following reasons:
WHAT ARE THE ADVANTAGES TO FILING CHAPTER 13?
There are many reasons that Chapter 13 case may be preferable to a Chapter 7 case. While a Chapter 13 case requires a three to five year plan, a Chapter 13 case may be preferable for the following reasons:
Contact our board certified consumer bankruptcy attorneys
Don’t let crushing debt drive you out of your home or car. Chapter 13 bankruptcy can give you the opportunity to start over, free from your debt. Call Stubbs & Perdue at 1-800-348-9404 or contact us online to schedule your bankruptcy consultation at our New Bern or Raleigh offices.