Chapter 13 bankruptcy is a type of bankruptcy a debtor may declare to hold on to as many assets as possible and repay their debts. It’s an innovative and attractive way to get out of debt. This video will explain what chapter 13 bankruptcy looks like and how it can benefit debtors.
Chapter 13 gives the debtor the ability to craft a payment plan themselves, instead of being told to give things up. They will describe how they will make payments to a trustee who will then distribute the payments to creditors over the next three to five years. Oftentimes, a debtor will work with a bankruptcy attorney to make a successful plan.
Of course, not just any plan will do, and that’s why it’s helpful to work with a bankruptcy attorney. The plan needs to be based in “good faith”. In other words, there needs to be a reasonable chance for the plan to actually achieve the goals of paying off the debt while staying within the limits of the law.
Bankruptcy is a stressful and overwhelming situation, but you don’t need to face it alone or pay back all your debts at once. Chapter 13 bankruptcy allows you to control how you pay. For more information, check out the video in the link above.