Chapter 13

Chapter 13 is the “wage earner” bankruptcy. Chapter 13 bankruptcy is also available to small unincorporated businesses owned and operated by individuals. If you have regular income and a desire to pay your debts, (or a portion of them) but currently are unable to do so, you may be able to propose and carry out a chapter 13 repayment plan under which creditors are paid over an extended period of time under bankruptcy court supervision and protection. It is possible that you could have a five year period to adjust your debts in this way while creditors are prohibited from starting or continuing collection efforts. Most chapter 13 cases are used to help catch up on house payments that are owed at the date of the case filing and also restructure car payments. Also Chapter 13 is very useful if real estate or income taxes are owed and you can pay them if spread out over 5 years.

Any individual is eligible for Chapter 13 relief as long as the individual’s unsecured debts and secured debts are less than certain amounts. A corporation is not an individual. Contact me to determine if this chapter is right for you.

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