by Shelly 7296

Created on: June 02, 2010   Last Updated: April 14, 2012

Chapter 13 is when a person can pay make all  of their debt under better terms. Either low interest or no interest at all.

When filing for Chapter 13 the first thing you do is file a two page form called a petition to the court asking for relief under Chapter 13. The filing is called an automatic stay and it prevents creditors from taking that person to court to pay their debt and it also prevents the creditor from forclosure or reposession of their  property. The court will give you a docket number which is your court case, which will take between seven to ten days to get.

Then that person will have to wait another  seven to ten days and  the court will ask that person  to file another petition which is called a matrix, The person will list all of their creditors and their creditors name and addresses. Then in another seven to ten days that person will have  to make a plan on how they  will pay all of their  creditors, the plan will include income, liabilities, all assets, monthly expenses, past financial history and evidence of income.

The court will appoint that person a trustee to help them with their debt reorganization. The person will most likely not see a judge. Their will be no fees with a Chapter 13 bankruptcy.

The person will attend a 341 meeting. That meeting includes The person , the persons trustee, the persons creditors. The person has 5 years to pay back their creditors if that person cannot pay their creditors back in 5 years then it could be turned into a Chapter 7 bankruptcy which all of that person debt except for school loans will be erased and they will not have to pay back.

Chapter 11 has no limits on debt, Chapter 11 is the most expensve bankruptcys, the rate of successful Chapter 11 is low about ten percent of less.

Chapter 13  cost less, allows the person to keep their property and asset, allow them to catch up on their debt

Information provided by http://moranlaw.net and also http://filing-bankruptcy-form.com

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