I am a recent Chapter 7 filer, which is pretty straightforward - the filer loses all non-exempt assets, but the debt is discharged.
As I understand it, in Chapter 13, there is no such forfeiture of non-liquid assets, but is there forfeiture of any liquid assets? Also. it seems the the filer must make regular payments to the creditors for 5 years, after which any remaining debt is discharged. How is the amount of the payment determined? Is it basically any after tax income that is remaining after allowable expenses (in which the allowable expenses are basically the same as that which is used for the Chapter 7 means test)? Or can the filer set aside excess cash flow for himself?
I'm very curious. Thanks.
As I understand it, in Chapter 13, there is no such forfeiture of non-liquid assets, but is there forfeiture of any liquid assets? Also. it seems the the filer must make regular payments to the creditors for 5 years, after which any remaining debt is discharged. How is the amount of the payment determined? Is it basically any after tax income that is remaining after allowable expenses (in which the allowable expenses are basically the same as that which is used for the Chapter 7 means test)? Or can the filer set aside excess cash flow for himself?
I'm very curious. Thanks.
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