Chapter 13 Bankruptcy

Chapter 13 bankruptcy can only be filed by individuals, not corporations or other entities. An individual who files Chapter 13 normally is in a repayment plan for 36 to 60 months. Payments are made to a Chapter 13 Trustee, who disburses the payments to creditors. Benefits of filing Chapter 13 include allowing an individual to keep non-exempt assets that a Chapter 7 Trustee would possibly liquidate. It also allows an individual to pay non-dischargeable taxes back without accruing ongoing interest and penalties. You can also eliminate second mortgages from your home in certain situations. There are other advantages to filing Chapter 13 that would be discussed during a consultation.