There are individuals who have a source of income coming on a regular basis. These individuals can file for Chapter 13 Bankruptcy which is also known as a Wage Earner’s Plan. Sometimes even self employed individuals or those who operate in an unincorporated business are also eligible to file for bankruptcy under Chapter 13.
There are many sources on the internet if you want to know what is bankruptcy chapter 13. A payment plan is devised in this chapter so that all the debts that are troubling these individuals can be discharged. All debts can be discharged except those which are ordered by court and statutory debts.
Debts that can survive a bankruptcy are also not included in the Chapter 13 Bankruptcy. If the individual has a debt but does not include in the payment plan, the debtors of this non-included debt are liable to enforce it on the debt holder.
It is important to understand what is bankruptcy chapter 13 when it comes to the payment of debts. These debts are paid in regular installments either on a weekly or a monthly basis. The individuals also have to furnish their future income so as to meet their payment obligations as agreed in the plan.
The payment plan is usually devised for three years, however, under special considerations the payment can be planned for five years. Once the individuals file Chapter 13 bankruptcy payment plan in the court, the creditors would review the plan. They have complete rights to oppose the plan.
The individuals here have to deal with any objections that the creditors might raise. It depends on the debtors on how well they can manage those objections. Post these settlements the court would be able to approve the plan. The payments have to be made according to the plan and there should be no deviations.
A legal help can always be taken or a bankruptcy attorney can be approached at any given point of time. These attorneys would also help their clients understand what is bankruptcy chapter 13 by all means and procedures. The individuals can also seek the attorney’s help in devising a payment plan.
Filing for bankruptcy is a complex process which involves lot of legalities. An experienced and a licensed attorney would be able to help you deal with the situation in the most professional manner. They would also answer any questions with regards to the discharge-ability of debts.
Chapter 13 bankruptcy does not suit certain debts like family support, child support, spousal support and the like. These payments have to be made by the individual along with the other payments as per the payment plan under this chapter. The other non-dischargeable debts are outstanding student loans or taxes.
In certain cases, the individuals make their payments as per the payment plan and they would still be leftover with some disposable income. This income can be used to pay off the credit card payments, unsecured creditors and the like in the smallest percentage on the actual debt that is owed to them. This way the individuals not only successfully complete their payment plan but also improve their credit rating.