Chapter thirteen personal bankruptcy is actually a judge-checked percentage bundle wherein the case of bankruptcy debtor will pay the safeguarded and you can unsecured creditors a month-to-month count established this new debtor’s family earnings and practical costs. The monthly obligations therefore the numbers paid to different creditors make up the debtor’s “Chapter thirteen package.”
A fl Section 13 has some benefits more than a part seven bankruptcy proceeding. This new borrower need not liquidate assets in Section thirteen as they do when you look at the A bankruptcy proceeding. Part thirteen case of bankruptcy it allows debtors to change or lose specific secured costs. Section 13 can prevent home financing property foreclosure and permit the fresh new debtor to catch upon past due mortgage payments. Continue reading