Repayment of creditors in Chapter 13 can range from 0% to 100% of the creditors' claimed debts depending on the amount of your disposable income and type of debt.
Certain debts that cannot be discharged in Chapter 7 can be discharged in Chapter 13. Chapter 13 also provides a mechanism for individuals to prevent foreclosures and repossessions, while catching up on their mortgage and/or other secured debts.
An experienced bankruptcy attorney with Zalkin Revell will advise you as to whether Chapter 13 would most benefit your situation and will guide you through every step of the bankruptcy process with care and understanding.
Chapter 13 is a personal financial reorganization for individuals with regular income and unsecured debt less than $360,475 and secured debt less than $1,081,400.
The debtor may keep his property and makes regular payments to the Chapter 13 trustee out of future income to pay creditors over time (3-5 years). If minimal disposable income is all that the Debtor has available, then that is all that is paid to the unsecured creditors.
Many people file Chapter 13 to make it affordable to catch up arrearages on their home mortgage and to bring sanity back into their lives by setting up a realistic and affordable repayment plan for all of their debts. Unlike credit consolidation, however, unaffordable debts are discharged (forgiven) and the plan is backed with the full authority of a Federal Court Order.
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