Individual Adjustment of Debts (Chapter 13) w/ Trustee

Chapter 13 bankruptcy is also known as "wage earner" bankruptcy because, in order to file for Chapter 13, you must have a reliable source of income that you can use to repay some portion of your debt. To qualify for Chapter 13, your debts must be less, as set forth in the Bankruptcy Code. As of December 31, 2006, secured debt could not exceed $922,975 and your unsecured debts could not exceed $307,675.

When you file for Chapter 13 bankruptcy you propose a repayment plan that details how you are going to pay back your debts over the next three to five years. The minimum amount you'll have to repay depends on how much you earn, how much you owe, and how much your unsecured creditors would have received if you'd filed for Chapter 7. A Chapter 13 Plan must be approved by the Bankruptcy Court but is not voted on by creditors.

If you have secured debts, Chapter 13 gives you an option to make up missed payments to avoid repossession or foreclosure. You can include these past due amounts in your repayment plan and make them up over time. To learn more about this kind of bankruptcy, contact Pierson Legal Services, or click here to read more from the U. S. Courts website.
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Chapter 7

Chapter 11

Chapter 12

Chapter 13