Chapter 13 Reorganization

Often referred to as a reorganization, this is the form of bankruptcy is often filed by people who make a robust income. Mostly individual debtors use this chapter in order to reorganize their debts while keeping all of their property which may be considered “nonexempt”. Brodzki Jacobs handles Chapter 13 matters for individual clients.

In a Chapter 13 Bankruptcy, a petition is filed and then a trustee is appointed to administer the debtor’s estate. There is one meeting of creditors which usually is scheduled within 30-45 days of filing. At this meeting, the debtor testifies to his/her assets and liabilities. The following month, the debtor’s attorney must appear at a confirmation hearing so that the Chapter 13 plan may be confirmed. Once the plan is confirmed, the debtor will make payments to the trustee administering the estate for a 36-60 month period of time.

In Chapter 13 bankruptcy, debtors can cram down the value of personal property such as automobiles and furniture. Debtors may also be able to strip liens against their real estate property. Further, Chapter 13 is a good vehicle that permits debtors to keep small businesses that they may own.

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