What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of bankruptcy that is available to individuals or businesses in Vermont. It allows the debtor to reorganize their debt and make payments over a certain period of time. This type of bankruptcy is also known as “wage earner” bankruptcy because the person filing for it must have a regular source of income. The debtor must create a debt repayment plan that will be approved by the court and his creditors. The plan usually must be paid off within three to five years, depending on the amount of debt and other factors. It will also outline how much of the debt will be paid off and how much will be eliminated. Once the repayment plan is approved and the debtor has made all of their payments, any remaining debt that is not paid off will be discharged. This means that it is no longer owed and the creditor is not able to collect any of the remaining debt. Chapter 13 bankruptcy is a great way for individuals or businesses in Vermont to get a fresh start and regain financial stability. It can be a complex process, so it is important to speak with an experienced bankruptcy attorney to understand the different options available and ensure that the most beneficial decision is made.

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What is Chapter 13 Bankruptcy?

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