Chapter 13 Bankruptcy Attorney
Chapter 13, also known as “wage earner bankruptcy”, requires a reliable source of income that can be used to pay off some of the debt. While filing for Chapter 13 bankruptcy, a repayment plan must be proposed that details how the debt will be paid off within 3-5 years. The minimum amount to be paid depends on how much the consumer earns, how much they owe, and how much the unsecured creditors would receive if Chapter 7 was filed instead. The federal government limits the debt amount to under $1,149,525 in secured debt and under $383,175 in unsecured debt. If secured debts are involved, the consumer has the option to make up missed payments to avoid repossession.
Chapter 13 Bankruptcy Attorney Ventura
Bankruptcy is a process by which individuals or businesses can repay or eliminate some or all of their debt under the supervision of the Federal Bankruptcy Court. There are two major categories of bankruptcy: liquidation and reorganization. In liquidation, the person or company sells (liquidates) property to pay back debt. Some property may be protected (exempt) from liquidation, depending on the situation. On the other hand, reorganization is an attempt to extend the life of a company. It includes the restatement of assets and liabilities and a restructuring of the payment system to help the company pay its creditors more reliably. There are several types of bankruptcy, denoted by chapters, and each covers different situations and follows its own specific regulations. Here we’ll go into detail about Chapters 7, 11, and 13.
In Chapter 7 bankruptcy, some property may be liquidated to pay off debts, but often much of the property will be exempt
Chapter 11 or “reorganization bankruptcy” is mostly filed by struggling companies to help restructure their business.
Chapter 13, also known as “wage earner bankruptcy”, requires a reliable source of income that can be used to pay off some of the debt.