Chapter 13 – A Review Guide

If someone is filing bankruptcy under Chapter 13, the aim of the filing the case is to get the chance to repay some part or entire debts on his name. Unlike Chapter 7 that involves total liquidation of assets, Chapter 13 offers a restructuring debt that allows the debtor to pay off the creditors whatever income he will be having in the future.

In Chapter 13, the debtors are allowed to keep their property and court approves a new interest free plan for repayment. A detailed plan is created considering the transactions that will take place with the time. This eliminates the presence of a trustee that remains in case of Chapter 7, who then pays to creditors.

Chapter 13 also exhibits a great advantage over Chapter 7 in form of full discharge option. Another most important advantage that Chapter 13 offers is that even if the creditor is not agree, repayment can be created.

It is quite important to understand that who can file for Chapter13 bankruptcy? The person who is seeking to file his bankruptcy under Chapter 13 should have regular income. There are few more criteria that can be met while filing the bankruptcy and your attorney would be the perfect person to introduce to them.