Chapter 13 Bankruptcy Is A Plan Of Reorganization and Repayment

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

Chapter 13 is a type of bankruptcy called a plan of reorganization or repayment. The debtor must pay all or part of their debts. The debtor must first submit a plan for repayment in bankruptcy court so that it can be approved. This means that the debtor will pay his debts with the protection of the court. Within that period, the debtor must pay his debts to a Chapter 13 trustee. The trustee will distribute the money paid by debtors to creditors says Peck law Grouip Bankruptcy Attorney Steven C. Peck.

The only time that the debtor is relieved of its debts is when the repayment is completed. When you file personal bankruptcy, Chapter 13 is necessary to know its drawbacks, this can help make your decision. The main disadvantage of this failure is that the duration of the state of bankruptcy will last for some years. This state of bankruptcy, leaving a big red mark on your credit report and this affects the chances of getting a new loan. Bankruptcy can also affect the future employment of individuals. It will be difficult for employers to hire someone for a management position that has a history of failure. Also make sure you have a stable income for the period of repayment, not being able to pay the amount indicated in the repayment plan, the bankruptcy court can dismiss your Chapter 13 type of bankruptcy. This allows you to convert your Chapter 7 bankruptcy of a type of failure.

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Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.