Bankruptcy Chapter 13 Explained

Bankruptcy chapter 13 explained the easy way watching the best videos on the subject. If you are looking for information about bankruptcy chapter 13, well you have come to the right place. Unlike on many other sites I will not overwhelm you with lots of legal text and complicated reasoning, just give it to you straight as I would like it to be explained to me.

This site is based on video presentations of the subject bankruptcy chapter 13 explained, why read when you can watch a presentation explaining it all, its quick and gets straight to the point. There are thousands of videos about this subject and I spent a lot of time reviewing and selecting the best ones that explains the bankruptcy chapter 13 dilemma, telling you what you need to know within the next 10 minutes.

Chapter 13 Bankruptcy Information: Overview of Chapter 13.


If you have any bankruptcy questions check out our FAQ section were you will find a lot of answers to commonly asked questions. If you are looking for forms and plan to file for bankruptcy or just want to see and learn what information is required to fill out the forms relating to chapter 13, check out our bankruptcy chapter 13 forms section.





Maybe chapter 13 is not for you, you should check and see if the bankruptcy chapter 7 option is a better option for you. This is the most commonly filed bankruptcy option that for most people eliminates debt rather than using a repayment plan to pay off the debt over time.

That said, the chapter 13 procedure will give you an option to negotiate with your creditors to keep certain high value assets or maybe stop or delay your house from going into foreclosure, if not just to live in it for a while longer. This is a major difference from filing chapter 7 so if you have assets you absolutely want to keep you should read more about the differences between bankruptcy options.

Bankruptcy Chapter 13 Explained From a Debt Perspective

In the end of the day, if you cannot pay off your debt within the next 3-4 years excluding your house mortgage, filing for bankruptcy might be the way to go. When you consider this think about what you normally would be doing with your income if you had a more reasonable debt. When calculating how long it will take to repay your debt, do not set aside so much of your income that you will be totally miserable during several years or forsake normal things like pension contributions, college funds or health insurance. You and your family should be comfortable living for many years while paying off the debts otherwise the plan would most likely fail. Use a calculator to see how much money you will be able to set aside every month, and be honest to yourself. If you find yourself in a situation where you have to borrow more money to keep up with your payments, filing for bankruptcy might be an option for you.



Bankruptcy Attorney Doug Allen Bernacchi explains Chapter 13 basics

The definition of the chapter 13 bankruptcy option is reorganization, meaning the aim is still to pay off your debt but by definition, the debt will be reorganized and in most cases re-negotiated into more manageable amounts to be repaid in a payment plan. The payment plan runs 36 months to up to 60 months and is the basis for the chapter 13 filing process. Any amount that has been reduced in the payment plan is subject to discharge, meaning debt that will be forgiven by your creditors. The discharge is usually the amount that you would not have been able to pay anyway. Keep in mind that the discharge is only available to you if you stick to the payment plan and make the payments through out the time the payment plan is in effect. If you fail the plan or in any other way do not follow the chapter 13 bankruptcy rules, you risk not receiving the discharge at all and would find yourself yet again in trouble. The rules are simple and spelled out to you in a written agreement and in most cases explained to you by the judge or your attorney. Do not agree to any rules or conditions that you do not fully understand, you will have to live with them for many years to come. You should have bankruptcy chapter 13 explained in detail by a lawyer specialized in this subject.

Bankruptcy Chapter 13 Explained in a Long Term Perspective

One thing to keep in mind is that if you for some reason, cannot keep up with your end of the deal or simply change your mind about the whole thing, you have the right to apply for case dismissal, meaning your bankruptcy chapter 13 case will be closed down. If you decide to dismiss your case you can instead explore other debt solutions that may or may not include proceeding with a bankruptcy. Remember though, that if you fail the means test the only available bankruptcy option left for you is chapter 13. Check with an attorney and have bankruptcy chapter 13 explained to you properly. The means test however, takes into consideration how much income you actually made on an average in the last 6 months and of course how much you owe your creditors. The time element makes it possible to pass the means test at a later date if your situation gets worse, for instance losing your job or in any other way reducing your income or, knock on wood, increase the money owed further by for an example medical bills.

Keep in mind the consequences of filing for bankruptcy, it is not just something that effects you but your family as well. For instance your credit score will most likely be effected and many times for several years to come. Lowering the credit score will probably result in paying at a higher interest rate for anything new that you finance but all things considered, you are in bankruptcy and should not plan to take on more debt anyway so the impact of a ruined credit score might be over rated in your situation. It is always good advice to have bankruptcy chapter 13 explained to you by an attorney.