Monday, September 21, 2009

Chapter 13 Reorganization

Chapter 13 bankruptcy case is a reorganization proceeding available to individuals with regular income whose debtors are less than proscribed debt limits (secured and unsecured). In chapter 13 cases, the debtor's assets are not liquidated. Instead, the debtor pays his debts, in whole or in part, through a plan that must be confirmed by the court in accordance with specific statutory criteria.

A debtor is chapter 13 remains in control of his or her assets. A trustee, however, is appointed. The debtor pays the trustee, who makes payments to creditors pursuant to the repayment plan confirmed by the bankruptcy judge. Debtors would obtain a discharge of personal liability from most debts. The chapter 13 discharge is typically available only after the debtor has made all of the payments specified in the plan. Source: American Bankruptcy Institute.

Warmest Regards,

Bob Schaller

Your Bankruptcy Advisor Blog
By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm

Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys.

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