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Chapter 13 Bankruptcy Attorney Carlsbad, San Diego.

Chapter 13 is known as “reorganization bankruptcy.” Chapter 13 is generally used by individuals who have a regular source of income above the income amount allowed under Chapter 7 and assets above the amount allowed under Chapter 7, but are still unable to pay their bills on a timely basis. A chapter 13 bankruptcy allows such an individual to repay all or most of his/her total debts on an extended schedule (3-5 years). Generally, the debts that are not paid off during that period are discharged at the end of the 5 years if payments are kept up during the plan.

Under a Chapter 13 bankruptcy, you file most of the same forms as you file in chapter 7, plus a proposed repayment plan, in which you describe how you intend to repay your debts over the next three to five years. Some debts must be repaid in full; others you pay only a percentage; others aren’t paid at all. Some debts you have to pay with interest; some are paid at the beginning of your plan and some at the end. A bankruptcy trustee is assigned to oversee the case and handle your payments.

You will attend the First Meeting of Creditors about four to five weeks after you file. If the trustee is satisfied with your payment plan, he or she will recommend its approval by the judge. A few weeks after the First Meeting of Creditors, the judge normally confirms (approves) your plan if no creditor opposes it and the trustee has recommended it.

When a creditor or the trustee objects to a plan, the judge usually holds a hearing within a few months to determine whether your plan should be approved over the objection. It is also possible for you to resolve the objection before the judge’s hearing by amending the plan to satisfy the objection. If your plan is confirmed, and you make all the payments called for under your plan, you will receive a discharge of any balance owed on all dischargeable debts at the end of your case.

There are also Chapter 9 and Chapter 12 bankruptcies for municipalities and family farmers respectively.