One of the most commonly filed chapters of bankruptcy is chapter thirteen. Chapter thirteen bankruptcy is a rehabilitation that gives the debtor a plan of payment who have a regular source of income. This enables the debtor to come up with a way to pay back all or at least a portion of their debt to the creditor. This is where chapter thirteen bankruptcy gets its other name, Wage Earner Bankruptcy.
Unlike chapter seven bankruptcy, chapter thirteen allows the debtor to maintain ownership of all of their property. However, the debtor must devote a portion of their income to repaying the debts that they owe. This is normally a pay period that extends over three to five years. The amount of time it takes to repay the debt depends on the person's annual income, the value of their property, and the amount of their expenses.
Chapter thirteen bankruptcy is only available to those who have a regular source of income, and their debts to not go over prescribed limits. If you make a monthly income that is less than your states average monthly income, your payment plan for your debts will more than likely be over a three year period unless a court finds a reason they should extend the plan over several more years. If you make more than your state's average income, your payment plan will probable by over a five year period. There can be no payment plan that goes over the five year period. There is a lot of confusion that exists in the process of filing for bankruptcy. The best idea is to consult an attorney with the knowledge of the language and inner workings of bankruptcy. They can better explain what will happen and what you are responsible for in your bankruptcy obligations. They can better inform you on what everything means.
For more info search Bankruptcy Attorney San Diego or www.goldenstatelawgroup.com