A chapter 13 bankruptcy can be a stressful process filled with a million questions. This video takes a look at the overview on filing for bankruptcy so you can make informed decisions and secure your financial future.
When Congress first enacted chapter 13 bankruptcy, it was in the hopes that it would maintain the self-respect of the debtor while providing the maximum return possible to the creditors.
A chapter 13 bankruptcy starts with a detailed plan on how the debtor will pay off their debts over a three or five year period. They will pay off their debts to a trustee who distributes the money to the various creditors.
A big benefit to chapter 13 bankruptcy is that it allows the debtor more flexibility. The debtor must conform to certain laws and work with creditors, but they will dictate the final payment plan.
Additionally, chapter 13 bankruptcy allows for the debtor to maintain ownership of their assets while they are paying off their debts. This is in contrast to chapter 7 bankruptcy, where a debtor must surrender their assets.
For more information on chapter 13 bankruptcy laws and how they can work for you, click on the link to the video above.