Chapter 13 Bankruptcy Lawyers
Experienced Detroit Area Bankruptcy Lawyers | Wayne, Macomb & Oakland County
Chapter 13 Bankruptcy offers “reorganization” or “payment plans” of your debts if you are a “wage earner” – which means if you have a source of income.
Chapter 13 bankruptcy is officially referred to as “Adjustment of Debts of an Individual with Regular Income” because it is designed for people who have a regular source of earnings, or other income. Instead of requiring the debtor to sell his or her property to pay creditors (as in Chapter 7) Chapter 13 allows the debtor to propose a “plan” to repay creditors over time – usually three to five years.
Under Chapter 13 bankruptcy the debtor usually remains in possession of the property of his/her “estate” (house, car, property) and makes regular payments to creditors, through the trustee, based on their expected income over the life of the plan. The debtor must complete the payments required under the plan before the Bankruptcy is ‘discharge’.