What is Chapter 13 bankruptcy?

Many of the people that have financial problems think at bankruptcy as the ultimate solution. Some of them know what is involved some don’t. Some of them know that there two main options: chapter 7 bankruptcy and Chapter 13 bankruptcy. This article is about chapter 13.

So, what is Chapter 13 bankruptcy?

The chapter 13 bankruptcy let the people that have a stable income to plan the payment of their debts. The chapter 13 plan is also called a wage earner’s plan. The chapter 13 bankruptcy is the best option for the people that want to keep their properties while they continue to pay their debts.

There are several big advantages when filling for chapter 13.The main advantage is that individuals have the opportunity to save their homes for forecloses( In chapter 7 you can loose non exempt properties).In Chapter 13 individuals can keep the properties but they have to continue to pay the mortgage and stick to pay plan.

Not all people can apply for Chapter 13 bankruptcy. Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 relief as long as the individual’s unsecured debts are less than $307,675.Also a person cannot apply for chapter 13 if bankruptcy petition was dismissed in the previous 180 days. They also need to receive credit counseling from an approved credit counseling agency.

So if your question is “what is Chapter 13 bankruptcy?” the answer is simple. Is a bankruptcy form that allows you to keep your assets but in the same time you are forced to stick to a Chapter 13 pay plan (you will make this plan and court will approve it) and pay a monthly amount of money to your creditors.