What debts are covered under Chapter 13 Bankruptcy?

In Virginia, Chapter 13 Bankruptcy is a type of debt relief that allows individuals who have a regular income to develop a plan to repay creditors over a three to five-year period. With this type of bankruptcy, a debtor is able to keep their property and assets, as well as maintain their payment plan. Under Chapter 13 Bankruptcy law in Virginia, the following types of debts are covered: credit cards, medical bills, personal loans, utility bills, overdue rent and mortgage payments, taxes, business debts, court-ordered child support or alimony, or other unsecured debts. Additionally, if an asset is secured by debt, such as a car or house, a debtor can choose to pay off the debt over the three- to five-year period. Debts such as student loans and criminal fines, while not dischargeable under this type of bankruptcy, can still be incorporated into the payment plan. If a debtor successfully completes the payment plan, any remaining unsecured debts will be discharged at the end of the bankruptcy process. However, it is important to note that any secured debt must still be paid in full in order for the bankruptcy to be completed. Overall, Chapter 13 Bankruptcy in Virginia provides debtors with a way to pay off their outstanding debts in a manageable way. By understanding the types of debts covered by this type of bankruptcy, an individual can determine if this form of debt relief is the right solution for them.

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What debts are covered under Chapter 13 Bankruptcy?

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