top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

So how does Chapter 13 actually work?

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    So how does Chapter 13 actually work?

    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.

    #2
    Check out these sites that explain how Ch 13 works:

    BackgroundA chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. If the debtor's current monthly income is less than the applicable state median, the plan will be for three years unless the court approves a longer period "for cause." (1) If the debtor's current monthly income is greater than the applicable state median, the plan generally must be for five years.


    Check out these sites that explain the differences between Ch 13 and Ch 7:



    Happy reading!
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

    Comment

    bottom Ad Widget

    Collapse
    Working...
    X