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James F. Kahn, P.C. is a Debt Relief Agency. We help people file for relief under the United States Bankruptcy Code.
Chapter 13 – Adjustment of Debts
Chapter 13 bankruptcy allows qualified individuals or small proprietary business owners (NOT corporations or partnerships) to consolidate the debt while making convenient monthly payments to a trustee. A payment plan is proposed which repays the debt over a three to five year period. The amount of the monthly payment and the length of the repayment plan is based upon the following factors:
The most common uses of Chapter 13 involve:
Click here for the Pros and Cons of Chapter 13 Bankruptcy
Secured debts are paid 100% on the dollar (although interest is set to 0%), while unsecured debts may be paid less than 100% on the dollar. A person receives a discharge under Chapter 13 once the payment plan is completed.
One purpose of a chapter 13, as opposed to a chapter 7, is to enable a debtor to retain certain assets (for example, your home) that might otherwise be liquidated by a chapter 7 Trustee. It also provides an alternative to Chapter 7 when you have too much "disposable income" (your net monthly income exceeds your net monthly expenses by too much) and usually yields much lower monthly payments than you were previously paying and (here's the real benefit), after 36 months, you are done! Your debts are gone.
The goal of most any personal bankruptcy is to discharge your existing debts by repaying all or a portion of your debts, and allow you a *fresh start* on your finances. In other words, once your discharge is granted, you no longer need to repay the debts that were incurred before you filed your bankruptcy. Click here for Chapter 13 Timetable of Events |
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