Szabo Law Group, P.A. Florida. Bankruptcy, immigration and real estate attorneys

Generally, what is a Chapter 13 Bankruptcy?

Generally, what is a Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy, also phrased as a reorganization, is a legal process by which a Debtor can catch up on past due debts, reinstate mortgage, auto, and other secured loans, and/or if they qualify, repay a portion of their unsecured debt without the worry of losing any assets. Chapter 13 is also often an alternative bankruptcy option for a Debtor who is unable to qualify for a Chapter 7 Bankruptcy. In a Chapter 13 Bankruptcy, Debtors are required to make monthly payments to the Chapter 13 Trustee for a period of 36-60 months. The amount of the monthly payment and number of monthly payments required depends on the Debtor’s specific circumstances.