Chapter 13, entitled Adjustment of Debts of an Individual With Regular Income, is designed for an individual debtor who has a regular source of income. Chapter 13 is occasionally preferable to chapter 7 because it enables the debtor to keep a valuable asset, such as a house, and because it allows the debtor to propose a “plan” to repay creditors over time – usually three to five years. Don’t qualify for Chapter 7 relief? Chapter 13 is also used by consumer debtors who do not qualify for chapter 7 relief under the means test.
Chapter 13 is very different from chapter 7 since the chapter 13 debtor usually remains in possession of the property of the estate and makes payments to creditors, through the trustee, based on the debtor’s anticipated income over the life of the plan. Unlike chapter 7, the debtor does not receive an immediate discharge of debts. The debtor must complete the payments required under the plan before the discharge is received. The discharge is also somewhat broader (i.e., more debts are eliminated) under chapter 13 than the discharge under chapter 7.
While the bankruptcy case is open, the debtor is protected from lawsuits, garnishments, and other creditor actions while the plan is in effect.
Law Office of George H. Weber, LLC
2001 West Main Street, Suite 230
Stamford, CT 06902
Phone: (203) 653-5133 Fax: (203) 842-3901
Disclaimer: The information contained herein is provided for general information purposes only and is not intended to convey a legal opinion nor legal advice for any particular case or situation.
This information does not represent a complete discussion of all the issues relating to the area of consumer bankruptcy. Do not rely on the information contained in this web site. Since every individual's factual situation is different, independent legal advice regarding specific situations from a licensed attorney is advisable.
Our attorneys are licensed to practice law only in Connecticut, therefore the information contained in this site may not be accurate for persons located outside of Connecticut.
Nothing in this web site shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this web site shall be construed to be a guarantee or prediction of result.