Chapter 13 Eligibility
The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.) Click for more: Chapter 13 Bankruptcy offers individuals a number of advantages over A sale of a debtor’s property with the proceeds to be used for the benefit of creditors. under The chapter of the Bankruptcy Code providing for "liquidation,"(i.e., the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors.) Click for more: Chapter 7 Bankruptcy. Chapter 13 offers individuals an opportunity to save their homes from foreclosure. By filing under Chapter 13, individuals can stop foreclosure proceedings and may cure delinquent mortgage payments over time. However, debtors must still make all mortgage payments that come due during the Chapter 13 plan. Chapter 13 also allows individuals to reschedule secured debts (other than a mortgage for their primary residence) and extend them over the life of the chapter 13 plan, thereby lowering the payments. Chapter 13 also has a special provision that protects third parties (co-signers) who are liable with the A person who has filed a petition for relief under the Bankruptcy Code. on “Debts incurred for personal, as opposed to business, needs..” Chapter 13 acts like a consolidation loan under which the individual makes the plan payments to a Chapter 13 The representative of the bankruptcy estate who exercises statutory powers, principally for the benefit of the unsecured creditors, under the general supervision of the court and the direct supervision of the U.S. trustee or bankruptcy administrator. The trustee is a private individual or corporation appointed in all chapter 7, chapter 12, and chapter 13 cases and some chapter 11 cases. The trustee’s responsibilities include reviewing the debtor’s petition and schedules and bringing actions against creditors or the debtor to recover property of the bankruptcy estate. In chapter 7, the trustee liquidates property of the estate, and makes distributions to creditors. Trustees in chapter 12 and 13 have similar duties to a chapter 7 trustee and the additional responsibilities of overseeing who then distributes payments to creditors.
Any individual, even if self-employed or operating an unincorporated business, is eligible for Chapter 13 relief as long as the individual’s unsecured debts are less than $394,725 and secured debts are less than $1,184,200. No individual may be a debtor under Chapter 13 or any Chapter of the The informal name for title 11 of the United States Code (11 U.S.C. §§ 101-1330), the federal bankruptcy law. Click for more: Bankruptcy Introduction Video unless he or she has, within 180 days before filing, received Generally refers to two events in individual bankruptcy cases: (1) the "individual or group briefing" from a nonprofit budget and credit counseling agency that individual debtors must attend prior to filing under any chapter of the Bankruptcy Code; and (2) the "instructional course in personal financial management" in chapters 7 and 13 that an individual debtor must complete before a discharge is entered. There are exceptions to both requirements for certain categories of debtors, exigent circumstances, or if the U.S. trustee or bankruptcy administrator have determined that there are insufficient approved credit counseling agencies available to provide the necessary counseling. from an approved credit counseling agency either in an individual or group briefing.
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