Chapter 13 bankruptcy rules

Here are 10 rules for Chapter 13 bankruptcy

1. the most important rule: you don’t have to hand over any of your property; instead, you pay your debts out of your earnings.

2. You are not allowed to fill for Chapter 13 bankruptcy if you received a bankruptcy discharge in the last 4 years

3. You are not allowed to go for Chapter 13 if another case of bankruptcy was dismissed 180 days before.

4. You have to complete a credit counseling course prior to filing and a financial management course before obtaining a discharge.

5. You must have sufficient income to make payments under a Chapter 13 plan.

6. You need to develop a workable payment plan proposing how you plan to pay your debts over a 3 to 5 years period.

7. Administrative claims and Priority debts will be paid 100%.

8. Mortgage defaults will be paid 100% if you would like to keep your house. Other secured debts defaults have to fully paid of you want to

keep your property. Unsecured debts will be paid anywhere from 0% to 100% of what you owe.

9. You must pay on time every month; otherwise you case may be dismissed.

10. The Chapter 13 discharge is received only after you complete your pay back plan