Chapter 13 Wage Earner Bankruptcy Basics Part 1
If you're an individual or a sole proprietor, you can file a Chapter 13 bankruptcy to repay all or part of your debts. Under this chapter, you can propose a repayment plan in which to pay your creditors over three to five years. If your monthly income is less than your state's median income, the plan will be for three years unless the court finds "just cause" for a longer period. If your monthly income is greater than your state's median income, the plan must generally be for five years. You cannot have a plan that exceeds the five year limitation.
Many people who file Chapter 13 bankruptcies have:
- Mortgages or other loans they would like to bring current, so they don't lose their homes or other property
- Taxes, child support or student loans that can't be wiped out by Chapter 7 bankruptcy
- Moral convictions that all debts should be paid no matter how long it takes
For a Chapter 13 bankruptcy, you'll need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities). You must have no more than $922,975 in secured debt (debt involving property that your creditor might take if you don't make your payments) and $307,675 in unsecured debt. These amounts are adjusted periodically to reflect changes in the consumer price index. The court filing fee is $274.
Chapter 13 Wage Earner Bankruptcy Basics Part 1
***Note This page is an Archieve of Publicly released information either through our company or another Press Release organization. We do not "fact check", "Support", nor "Dispute" any of the information provided to us. We are a distribution point and Historical press release research and search service. This information only represents the fact that at one point in time the release was distributed to 1000's of publications both online and off. PRNewsNow will not take sides in any personal or commercial disputes you have with the writer of this press release. We will defend its right to exist blindly and without regards to its political, commercial or personal implications.***
