Chapter 13 Bankruptcy
Chapter 13 bankruptcies are repayment plans administered through the courts that last 3-5 years in duration. A percentage of your unsecured debts are paid back over this time. The remaining balances for these debts are then eligible for discharge at the plan's conclusion.
There are a number of reasons for filing a Chapter 13 bankruptcy including: assets in excess of what can be exempted in a Chapter 7, income that the new law will not permit to be filed as a Chapter 7, a debtor's desire to pay some portion of their debts back, or need to cure arrearages in secured debt. These are some common reasons for filing aChapter 13, but by no means an exhaustive list.
Both Chapter 13 and Chapter 7 bankruptcies have similar petitions. Chapter 13 bankruptcies have a Chapter 13 plan, which denotes how your payments will be made through the course of the plan's life. The formula in determining the monthly payment is complex and is why I do not suggest that anyone try this without an experienced lawyer. This complexity is why we do not offer assisted filing for Chapter 13s. The process is simply too complicated for anything less than full representation, it would be irresponsible to tell someone otherwise. Fees for Chapter 13s are paid in part before filing with the balance paid through the plan.
