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Chapter 13 Bankruptcy Overview
The Law Offices of
Neil E. Colmenares, P.C. are attorneys who concentrate in the complex area
of Chapter 13 Bankruptcy Law. Save your home and file Chapter 13 Bankruptcy
to stop foreclosure. We have Chapter 13 Lawyers in Queens, Nassau and New
York. Know Chapter 13 law Attorneys.
Chapter 13, in its simplest form, is a court supervised repayment plan. How much has to be repaid depends on the facts of each case. Chapter 13 has traditionally been used by people who are in foreclosure, people who would lose property they want to keep if they filed Chapter 7, people who would have to repay certain debts in Chapter 7 that are dischargeable in Chapter 13 and people who are ineligible to file Chapter 7.
In general, people filing Chapter 13 are able to get a discharge while repaying only pennies on the dollar. The following article is a brief overview of Chapter 13.
Chapter 13 Overview
Chapter 13 is a reorganization proceeding available only to individuals (not corporations) who have "regular income." The purpose of Chapter 13 is to enable a financially strapped individual to repay their debts accordingly to the principles enunciated in the Bankruptcy Code for a certain length of time under court supervision and protection.
In Chapter 13, the debtor submits a "plan" to repay creditors in a three to five year period. Unsecured creditors must receive at least as much in a Chapter 13 as they would in a Chapter 7. The debtor commits their "disposable income" to the court appointed trustee as part of the repayment to creditors. As a benefit, the debtor gets to keep their property (with limitations). Once the Bankruptcy Court "confirms" the Debtor's plan, all creditors are bound by the plan regardless of whether the Debtor continues making payments under the plan!
Administration of a Chapter 13 case is somewhat different than Chapter 7. In Chapter 7, anything acquired by the Debtor after the filing of the petition is not considered property of the estate. Under Chapter 13, on the other hand, until the final payment under the confirmed plan is made, all property of the Debtor acquired both pre-petition and post-petition are considered property of the estate.
Chapter 13 has some interesting
features that the other Chapters do not. For example, there is a Co-Debtor
stay that acts as a stay against the commencement or the continuation of a
civil action against an individual that is liable with the Debtor. Chapter
13 also provides for a "Super Discharge" (which has been limited
due to the "reforms" which took effect on 10/17/05) of debts that
are otherwise non-dischargeable in a Chapter 7 proceeding such as debts resulting
from a willful and malicious injury 11 U.S.C. 523(a)(6), Debts incurred to
pay non-dischargeable tax obligations under 11 U.S.C. 523(a)(14) and (14A)
and Debts arising from property settlements in divorce or separation proceedings,
as provided under 11 U.S.C. 523(a)(15). Finally, Chapter 13 allows a Debtor
to withdraw the petition. This is in contrast to Chapters 7 and 11 which require
court approval.
For additional information about Bankruptcy, click here to read recent articles by Mr. Colmenares.
Want to read the Bankruptcy Code? If so, click here.
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Save your home and file Chapter 13 Bankruptcy to stop foreclosure.
Chapter 13 Lawyers in Queens, Nassau and New York. Know Chapter 13 law Attorneys.
Home Page, Contact Us, Recent Articles, Statement of Client's Rights and Responsibilities, Site Map, Immigration Matters, Espanol
Bankruptcy, Frozen Bank Accounts and Wage Garnishment, Chapter 7 Overview, Chapter 13 Overview, Mortgage Foreclosure, Discharging Taxes in Bankruptcy, Discharging Student Loans in Bankruptcy, Why Credit Card Debt Consolidation Does Not Work, Bankruptcy for Creditors
Business, Buying and Selling a Business In New York State, Commercial Lease Negotiation in New York State, Liquor License Procurement in New York State
*Prior results do not guarantee a similar outcome.
This web site and the related links are purely a public resource of general information and it is not intended to be nor is it a source of legal advice. You should consult an attorney for advice regarding your specific situation. This information is generalized and should not be relied upon as legal advice. This communication does not create an attorney-client relationship.
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