| Bankruptcy Law - Questions & Answers
What is a Chapter 13
bankruptcy?
When you file a Chapter 13 case,
you agree to pay over to the Chapter 13 trustee
a portion of your disposable income each month
for 3 to 5 years. The disposable income is the
money you have left over after your necessary
expenses are paid. These payments are used to
pay your creditors. Usually, your assets are not
affected. Only your future income is paid to the
trustee.
Under certain circumstances, it will not be necessary
to pay your creditors the entire debt owed. Chapter
13 provisions allow for a discharge of certain
debts before they are paid in full. It may also
be possible to renegotiate a more favorable loan
rate or payment amount on car payments or other
secured debt.
[
Back to Topics ]
|
