Chapter 13 Bankruptcy is one of the types of bankruptcy that is available to individuals. The below information regarding Chapter 13 Bankruptcy is part of the notice that is required by 11 U.S.C. U.S.C. § 342(b). Debt relief attorneys, such as bankruptcy attorney Joseph Battaglia, are required to provide this information to individuals who are seeking bankruptcy relief, and whose debts are primarily consumer debts. If you are such an individual, please read on for more information about how a chapter 13 payment plan bankruptcy may be able to help you.
Notice Regarding Chapter 13 Required by 11 U.S.C. § 342(b)
Chapter 13 is for individuals who have regular income and would like to pay all or part of their debts in installments over a period of time and to discharge some debts that are not paid. You are eligible for chapter 13 only if your debts are not more than certain dollar amounts set forth in 11 U.S.C. § 109.
Under chapter 13, you must file with the court a plan to repay your creditors all or part of the money that you owe them, usually using your future earnings. If the court approves your plan, the court will allow you to repay your debts, as adjusted by the plan,within 3 years or 5 years, depending on your income and other factors.
After you make all the payments under your plan, many of your debts are discharged. The debts that are not discharged and that you may still be responsible to pay include:
- domestic support obligations,
- most student loans,
- certain taxes,
- debts for fraud or theft,
- debts for fraud or defalcation while acting in a fiduciary capacity,
- most criminal fines and restitution obligations,
- certain debts that are not listed in your bankruptcy papers,
- certain debts for acts that caused death or personal injury, and
- certain long-term secured debts.
– end of notice required by 11 U.S.C. § 342(b) –
Federal Bankruptcy Law is Complex
For any individuals seeking relief under Chapter 13, it is highly recommended to have competent legal counsel representing and guiding you through the process. Bradenton bankruptcy attorney Joseph Battaglia has represented hundreds of individuals in chapter 13 cases. Other chapters of bankruptcy relief, such as chapter 7, are available to individuals, and chapter 13 may not be the best course for you. Contact him today to schedule a consultation. There is no cost or obligation for bankruptcy consultations.