CHAPTER 13 BANKRUPTCY


15 May

UNDER A CHAPTER 13 BANKRUPTCY, A PERSON THAT EARNS WAGES DEVELOPS A  PLAN TO PAY SOME OR ALL OF THEIR DEBTS.  THE DEBTOR PAYS OFF THE PLAN BETWEEN 3 TO 5 YEARS.  THE PLAN CAN'T BE LONGER THAN 5 YEARS.  IN A LOT OF CASES, A PERSON WILL CHOOSE CHAPTER 13 TO KEEP THEIR HOME OUT OF FORECLOSURE.  THE DEBTOR CAN AVOID DIRECT CONTACT WITH CREDITORS AND MAKE CONSOLIDATION PAYMENTS TO A TRUSTEE.  THE TRUSTEE DISTRIBUTES THE FUNDS TO CREDITORS.  TO BE ELIGIBLE FOR CHAPTER 13, AN INDIVIDUAL'S UNSECURED DEBTS MUST BE LESS THAN $394,725, AND THEIR SECURED DEBTS MUST BE LESS THAN $1,184,200.  CORPORATIONS AND PARTNERSHIPS CAN'T FILE CHAPTER 13.  

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