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Your guide to Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

In Chapter 13 bankruptcy the debtor is allowed to keep their property and the courts arrange a new interest free payment plan where full details of what payments will be made, when they will be made and who they will be paid to.

Repayments start within thirty to forty five days of the case starting. During Chapter 13 Bankruptcy a trustee can be appointed to manage the distribution of the money to the creditors as is set out in the plan put together by the court.

The major advantage of Chapter 13 over Chapter 7 is the opportunity of a full discharge one the payments are finished as well as the court deciding if the repayment schedule set out in the plan is acceptable by the creditors or not. The creditors can launch an objection but the decision is down to the courts.