Chapter 13 is available for a consumer who owns asset(s) and whose income is above the median income. This Chapter is suitable for a debtor who wishes to retain the asset(s) which would not be otherwise allowed to retain under Chapter 7. However, in order to be qualified to get a discharge under this Chapter the debtor has to have a monthly disposable income. A 3 year or a 5 year plan is normally proposed to the Trustee and upon approval debtor makes regular payments to the Trustee through the expiration of the plan term. At the end of the term, the debtor gets a discharge.
The process of filing for Chapter 13 Bankruptcy is simple. Similar to Chapter 7, a meeting of creditor is scheduled. Debtor and his/her attorney are required to attend this meeting. The Trustee reviews the Plan and makes recommendations. Contact us if you wish to learn more about filing for Chapter 13 bankruptcy. We will review your situation and guide you as to what relief is appropriate for you.