Chapter 13 is a debt repayment program that brings houses out of foreclosure over a period not exceeding five years. If there are unpaid income taxes, the debtor can repay those taxes over five years.
What Type Of Debt Is Discharged In A Chapter 13 Bankruptcy?
In a Chapter 13 bankruptcy, many kinds of debts are discharged – including family law debts, spousal support, and equalization payments from the settlement of a marital estate. (Provided that these debts can be paid off in five years, with exceptions.)
What Assets Will I Be Able To Keep In A Chapter 13 Bankruptcy?
The assets that can be exempted are the same across every chapter of bankruptcy – but the exemptions will depend on which state you reside in. California exemptions are expansive.
Will I Lose Anything In A Chapter 13 Bankruptcy?
Debtors do not lose anything in Chapter 13 if they pay the equivalent of what creditors would receive in a Chapter 7 case over a period of time. Typically, this period of time is agreed upon as a five-year repayment plan.
For example, if you owe $50,000, you likely don’t want to file a Chapter 7 because you have too many assets. However, if you can pay the $50,000, plus the trustee’s 11% commission, you can do a Chapter 13 and keep the $50,000 in non-exempt assets.
How Long Does A Chapter 13 Bankruptcy Take To Complete?
It takes three to five years to complete a Chapter 13 bankruptcy. This depends largely on the results of the means test and the liquidation test, which shows what creditors would receive in a Chapter 7 case.
For more information on Chapter 13 Bankruptcy In California State, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (818) 514-1355 today.