Chapter 13 Bankruptcy Overview

This is a brief Chapter 13 Bankruptcy Overview which covers the general purpose of filing this chapter of bankruptcy. Chapter 13 Bankruptcy is considered a restructuring of debt over a period of time usually from 36 to 60 months. Sometimes a Chapter 13 Bankruptcy is more advantageous to a debtor then a Chapter 7 Bankruptcy. A Chapter 13 Bankruptcy allows for a few debt issues that cannot be accomplished by a Chapter 7 Bankruptcy.

Advantages of a Chapter 13 Bankruptcy Overview

• Can be filed by average to high income earners.
• Eliminates interest on unsecured debts.
• Can eliminate or strip second mortgage.
• Can stop foreclosure proceedings.
• Can stop repossession actions.
• Can stop wage garnishments.
• Can restructure secured and unsecured debt over time.
• Can restructure repayment of unsecured debt at 1-100% depending on income.

Disadvantages of a Chapter 13 Bankruptcy Overview

• Requires repayment of at least some of the debt.
• Procedure lasts 36 to 60 months.
• Tax returns must be turned in annually for review.
• Put on a fairly strict budget.
• Trust and Court monitor the process for the term of the bankruptcy.