Tuesday, August 4, 2015

Chapter 13 Bankruptcy

Chapter 13, also known as “wage earner bankruptcy”, requires a reliable source of income that can be usedto pay off some of the debt. While filing for Chapter 13 bankruptcy, a repayment plan must be proposedthat details how the debt will be paid off within 3-years. The minimum amount to be paid depends on howmuch the consumer earns, how much they owe, and how much the unsecured creditors would receive if Chapter was filed instead. The federal government limits the debt amount to under $1,149,525 in secured debt and under $383,175 in unsecured debt. If secured debts are involved, the consumer has the option tomake up missed payments to avoid repossession.


Law Offices of Hathaway, Perrett, Webster, Powers, Chrisman & Gutierrez - 805-644-7111

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