CHAPTER 13 BANKRUPTCY

Chapter 13 is reorganization bankruptcy and is called the wage earner’s plan.  In Chapter 13, there is one consolidated monthly payment plan (paying a percentage of unsecured, non-priority debts) for 3 to 5 years.

You can discharge credit cards, unsecured loans, repossession deficiencies, old rent, and many other types of debts.  You can also catch up on mortgage arrears.  Chapter 13 has a “super discharge.”  Chapter 13 is beneficial as it can enable you to include priority federal and state taxes, and may enable you to renew your driver’s or professional licenses, or register your vehicle and tag renewal.

Chapter 13 filers are typically above median income, or they have assets, or they have complicating factors.  Chapter 13 has advantages because assets are not liquidated in Chapter 13 as they can be in Chapter 7.  That means that Chapter 13 filers can protect their homes, vehicles, and other assets while still discharging debts.