Just Ask Jude Chapter 13
Chapter 13 Bankruptcy FAQ's
What is a Chapter 13 Bankruptcy and when can I use it?
Chapter 13 is a section of the Bankruptcy Code which helps qualified individuals, or small proprietary business owners, who desire to repay their creditors but are in financial difficulty. It is often referred to as a "mini Chapter 11" because you usually repay something to your creditors and you retain your property and make payments under a Plan.
What happens when you file a Chapter 13 Bankruptcy case?
Chapter 13 can prevent a home foreclosure and help a delinquent homeowner get current on their mortgage. Under Chapter 13, debtors undergo a sort of debt consolidation, making regular monthly payments to a court appointed trustee who then distributes the funds to creditors according to a predetermined restructuring plan. Forming the restructuring is the primary task of Chapter 13 bankruptcy.
What if I can't make the payments on my Chapter 13 plan?
The trustee can request the court dismiss your case. If the trustee has already filed the motion to dismiss, then you need to make up all the payments you missed by the court date.
Who files a Chapter 13 Bankruptcy and why do they file?
Many different types of people find themselves in situations where they might need to file a chapter 13 bankruptcy. Chapter 13 is less destructive to your credit than a chapter 7 bankruptcy and many people file 13 for that reason. Some people do not pass the means test for a chapter 7 bankruptcy and if this is the case, they might qualify for a chapter 7.
Do the IRS have to agree to my Chapter 13 plan?
No, the IRS are just another creditor in a bankruptcy case. As such, they are limited just like any other creditor.
What if I can't pay a non-dischargeable tax debt, even over a 5 year chapter 13 plan?
You can see if the IRS will do an offer in compromise for your tax debt. |
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