Chapter 13 Bankruptcy

Chapter 13 bankruptcy proceedings are designed to repay creditors either some or all of their debt over a 3 to 5 year period.  How much must be repaid depends on various factors, including your income, your household size and your monthly expenses.   Generally, chapter 13 may be preferable to chapter 7 if 1) you are trying to save your house and need to catch up on missed mortgage payments, 2) your house is worth less than the amount you owe on the first trust deed and you want to “strip off” the second lien, 3) you have debt that would not be discharged in chapter 7 (tax debt, for example) that you want to pay out over time or 4) you make too much money to qualify for chapter 7 relief.

 

 

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