What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a type of bankruptcy law in the state of Virginia. It is also known as a “wage earner’s plan”. This type of bankruptcy is a way for individuals with regular incomes to repay some or all of their debts over a period of time. When filing for Chapter 13 bankruptcy, a person must submit a repayment plan. This plan should include a breakdown of the debtor’s income, expenses, secured debts, unsecured debts, and any other relevant information. The plan should also include a proposed payment plan for the repayment of the debts. The payment plan will typically last from three to five years. Once the repayment plan is accepted, the court will appoint a trustee who will be responsible for distributing funds to the creditors. The trustee will also be responsible for monitoring the debtor’s progress in repaying their debts. In addition to repaying the debts, the filing of Chapter 13 bankruptcy will also provide certain protections to the debtor. This can include stopping any creditor harassment, stopping foreclosure, and protecting certain assets such as a car or home. Overall, filing for Chapter 13 bankruptcy is a way for individuals with regular incomes to deal with their debts. It is important that those considering Chapter 13 bankruptcy understand the requirements and protections of the process before making a decision.

Related FAQs

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