Chapter 13 Bankruptcy
A Chapter 13 bankruptcy allows you to consolidate your debts into one affordable monthly payment provided you have wages or other income to fund a payment plan.
CHAPTER 13 BANKRUPTCY BASICS
- Allows you to reorganize and consolidate your debt into one affordable monthly payment.
- Provides you with an opportunity to pay creditors on terms that are more favorable to you over a 3 to 5-year period.
- Allows you to retain your home and pay past due mortgage payments through your Chapter 13 Plan.
- May allow a reduction of the interest rate and monthly payments on secured debts such as your automobile and furniture.
- Allows you to repay tax debts through your Chapter 13 Plan.
- Allows you to repay past due payments on alimony and child support through your Chapter 13 Plan.
- Does not allow you to receive a discharge for most unpaid student loans, child support, alimony or certain unpaid taxes.