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Bankruptcy under Chapter 13 of the Bankruptcy Code is sometimes referred to as a “wage earner plan.” Under Chapter 13, a Bankruptcy Court can help a debtor reorganize his debts and pay them off over time. Under Chapter 13, a debtor typically keeps all of his or her property.
A Chapter 13 bankruptcy is available to individuals with less than $307,675.00 in unsecured debt and $922,975.00 in secured debt. 13 bankruptcy is available to individuals with less than $307,675.00 in unsecured debt and $922,975.00 in secured debt. Under the plan, the debtor must completely pay off certain “priority” debts, such as the costs of administering the bankruptcy, employees’ wages and benefits (if any), debts for undelivered services or goods (if any), and taxes, and pay for any encumbered property he wants to keep.
The debtor can plan, based on his ability, to partially pay any remaining debt and ask the Court to discharge the rest. Once the Court approves a payment plan for the debtor, a Court-appointed Trustee begins collecting the debtor’s payments and administering the plan. Upon the debtor’s successful completion of the repayment plan, the Bankruptcy Court discharges any remaining debt and concludes the bankruptcy.
If you are overwhelmed by debt and in danger of losing your house, your car, or other property, and/or are tired of creditors’ harassment, contact us today at 1-405-691-2555. We can help!