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What is Chapter 13 Bankruptcy

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					What is Chapter 13 Bankruptcy?

A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with
regular income to develop a plan to repay all or part of their debts. Under this chapter,
debtors propose a repayment plan to make installments to creditors over three to five
years.

Generally, chapter 13 is preferred by debtors who have a valuable asset, such as a home,
that is not completely covered by exemptions and that they wish to keep. Since the
debtors plan will require regular monthly or biweekly payments, Chapter 13 is usually
only appropriate for an individual debtor who has a regular source of income.

Chapter 13 offers individuals a number of advantages over liquidation under chapter 7.
Perhaps most significantly, chapter 13 offers individuals an opportunity to save their
homes from foreclosure. By filing under this chapter, individuals can stop foreclosure
proceedings and may cure delinquent mortgage payments over time.

Another advantage of chapter 13 is that it allows individuals to reschedule secured debts
(other than a mortgage for their primary residence) and extend them over the life of the
chapter 13 plan. Doing this may lower the payments.

Dunne Law Offices, P.C.
1500 John F Kennedy Boulevard Suite #200
Philadelphia, PA 19102
(215) 854-6342 (Office)

http://www.dunnelawoffice.com
http://www.dunnelawoffices.com
http://www.thephiladelphiabankruptcyattorney.com
http://www.bestphiladelphiabankruptcyattorney.com

				
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Description: What is Chapter 13 Bankruptcy