Chapter 13 Bankruptcy Laws

Personal Financial Reorganization

The main component of Chapter 13 bankruptcy laws is a repayment plan which allows you to keep your properties, but you are expected to pay off a portion or all of your debts over a 3-5 year period.  The amount you have to pay depends on your income.  

What you have to submit to the court:
  • Complete Financial Records - You must include all assets and total monthly expenses.
  • Viable Repayment Plan - You must clearly illustrate how you are going to pay all or a portion of your debts to your creditors over a 3-5 year repayment period.
Debt Limits:
  • Maximum Secured Debt Limit - $922,975
  • Maximum Unsecured Debt Limit - $307,675
  • Minimum Debt Limit - None
Time Limits:

3-Year Plan - Income is at or below your state's median.  Payments are determined by actual expenses instead of IRS guidelines.

5-Year Plan - Income is above your state's median.  IRS collection standards determine expenses.

Previous Bankruptcy Chapter 7 or Chapter 13:

If you had previously had a discharge from Chapter 7, 11, or 12 within the last 4 years, or a prior Chapter 13 case filed within 2 years of your new case,  you are not eligible to file for Chapter 13.

Non-dischargeable Debt:

Your eligibility to file Chapter 13 may be affected by your non-dischargeable debt such as income taxes, child support, alimony, personal injury liabilities from drunk driving.  Your repayment plan has to account for these debts to be paid over a period of 5 years or less.

Chapter 7 Bankruptcy Laws

Foreclosure and Bankruptcy

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