What Chapter 13 Bankruptcy Requires From You
March 2nd, 2010 by craigkantSimply put, Chapter 13 is the bankruptcy law that gives a individual three to five years to pay off their debts, with a reduced level of payments. In exchange for return for this lenient payment plan, the courts allow the person to keep his assets. When you file Chapter 7 bankruptcy, you wash your hands of all debt, and do not pay any of it back.
Chapter 13 Bankruptcy Information Explained
Chapter 13 requires that you repay all of your debts, but under much more favorable circumstances than you currently are paying. In order to file Chapter 13, you have to petition the court for authorization to file. Before they grant you that authority, they may require that you attend a debt management counseling class. Upon completion, you may then be given approval to file for Chapter 13.