Many people want to learn about Bankruptcy chapter 13. There are some important things that people need to know about this type of bankruptcy. In this situation, people need to pay back all or portion of their debts within 3 – 5 year period. They are allowed to keep their property when they are trying to repay their loan back to the lenders. This type of bankruptcy is also known as the reorganization bankruptcy. There is no property that is taken from all people who are in this situation. This chapter of bankruptcy can be beneficial for both creditors and lenders.
Differences Between Chapter 13 with Chapter 7 and Chapter 11 Bankruptcy
There are some differences between chapter 13 with chapter 7 and chapter 11 bankruptcy. Keep reading this article to learn more about these differences. It is a good idea to take a look at some of these points for learning about all available bankruptcy chapters.
Chapter 13 vs Chapter 7
Chapter 13 bankruptcy requires all people to repay some or all loans to the lenders. As the consequences, they are able to keep their properties with them. This situation is different from the chapter 7 bankruptcy. In this situation, people don’t have ability to pay the loan back. Therefore, they need to surrender their property to their loan companies.
Chapter 13 vs Chapter 11
Basically, both situations have similar conditions. People don’t have to surrender their property in both conditions. However, the chapter 13 bankruptcy is only available for all individuals with regular income. When people lose their regular income, they can continue with the chapter 11 bankruptcy. This later case is applicable for all individuals, partnerships, joint ventures, corporations, and many other companies.
How to repay the loan
After filing this chapter 13 bankruptcy, people need to learn how to get out from this situation. They need to repay their debts in full or partial. They can consult with their lawyers for solving this problem. It is important to create repayment plan for getting out from this bankruptcy situation. This plan should describe all important details about how people can pay all of their debts. This plan is going to be used in the court for processing this bankruptcy case.
There are several options that are offered by the court. People can choose their favorite repayment plan within 3 – 5 year period. They also need to describe everything on how they can repay their loans to their loan companies. They should include all loans, for example mortgage, car loan, and many other debts. When they know how to handle all procedures, they should be able to get out from this bankruptcy situation easily.