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    Add as FriendHow Come I Have to Pay Back Creditors If I Filed Bankruptcy?

    by: Brian

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    1 : How Come I Have to Pay Back Creditors if I filed Bankruptcy? Information for Chapter 13 Debtors
    2 : Chapter 13 vs. Chapter 7
    3 : There are different types of bankruptcy that consumers can file if they are in trouble with their debts
    4 : Chapter 7 bankruptcy allows for the discharge of debts without a repayment plan
    5 : Non-exempt assets are sold, money is distributed to creditors and the remaining balance of eligible debts is forgiven
    6 : Chapter 13 allows debtors to keep their assets but does not allow for all eligible debts to immediately be wiped away
    7 : Many Debtors Must File Chapter 13
    8 : Change to the bankruptcy law in 2005 made it more difficult to qualify for Chapter 7 bankruptcy
    9 : You now have to make below a certain income level or pass a means test
    10 : This means that more debtors file for Chapter 13 bankruptcy instead
    11 : If you file for chapter 13, you will have a repayment plan and thus will need to pay back creditors even with the bankruptcy filing
    12 : Chapter 13 Repayment Plan
    13 : A chapter 13 repayment plan usually lasts for anywhere from three to five years
    14 : Creditors who you owe money to must agree to the repayment plan
    15 : The bankruptcy court also must sign off on the plan, which is administered by a trustee
    16 : The amount you must pay back under your Chapter 13 repayment plan varies depending upon the kinds of debts you have and the income available to you
    17 : When are Debts Discharged?
    18 : Chapter 13 still provides financial relief by lowering your payment amounts to reasonable levels
    19 : At the end of the three to five year repayment plan, the debts that are covered by bankruptcy are discharged
    20 : You still end up with a clean financial slate at the end of this period, but you’ve gotten to keep your assets while having to pay back more of your debt
    21 : A bankruptcy lawyer can explain the impact of chapter 13 bankruptcy on your debts
    22 : Learn More About Filing Bankruptcy in Washington DC, Virginia and Maryland
    23 : Content provided by Best Legal Practices Bankruptcy Lawyer

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