Chapter 13 is that part of the federal bankruptcy law that permits a
person to keep their property that is reasonably necessary for their support
and maintenance, and to pay for that property and to pay
all other debts through a court approved plan administered by
the Chapter 13 Trustee.
Purpose: To permit
orderly repayment of your debts, treating all similarly situated
creditors the same.
Benefits: Property
needed for maintenance and support of you and your dependents
can be kept and paid for over time.
Method: You propose
a plan for repayment of your debts. Creditors and other interested
parties may object to the proposed plan. The
Bankruptcy Court either approves or disapproves the
plan. You make your plan payments to the Chapter 13
Trustee as set forth in the plan.
The Trustee distributes payments to your creditors in
accordance with the approved plan.
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