This is a type of bankruptcy that allows individuals to create a plan to repay their debts over a period of time. In a Chapter 13 bankruptcy, the debtor submits a plan to the court that outlines how much they can afford to pay each month. If the court approves the plan, the debtor must follow it.
Chapter 13 is often preferable to Chapter 7 because it enables you to keep an asset, such as a house, as you repay your debts over time.
To be eligible for Chapter 13 bankruptcy, you must meet the following requirements:
- You must have a regular income.
- You must have unsecured debts of less than $394,725 and secured debts of less than $1,184,200.
- You must be able to afford to make the payments under your proposed repayment plan.
If you are eligible for Chapter 13 bankruptcy, you will need to file a petition with the bankruptcy court. The petition will include information about your income, expenses, and debts. You will also need to file a plan of repayment with the court. Your plan must provide for payments to all of your creditors, including secured creditors and priority creditors. The plan must also provide for a payment to the bankruptcy trustee.
Chapter 13 bankruptcy can be a helpful way to get out of debt and get a fresh start. However, it is important to speak with any of the bankruptcy attorneys in Gehi & Associates  to discuss whether Chapter 13 is the right option for you.
