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Commonly Asked Questions about Chapter 13 Legal Documents

Your priority unsecured creditors get paid first and must be paid in full. If you dont have enough funds to pay your priority creditors, the court wont confirm (approve) your plan. Any amount that remains after paying your priority unsecured creditors will go to your general unsecured creditors. What Happens to Unsecured Debt in Chapter 13 Bankruptcy? - AllLaw AllLaw articles nolo what-happens- AllLaw articles nolo what-happens-
Cons of Filing Chapter 13 Bankruptcy Job loss, medical issues, and added expenses all strain the plan. 2. Certain Debts Remain: Common protected debts like most student loans, alimony, and child support cant be discharged in Chapter 13. (These debts are also not discharged in a Chapter 7 case).
Chapter 13 bankruptcy creates a payment plan to pay down then eliminate your debts. People with steady income and personal property they want to keep may benefit more from Chapter 13 than with Chapter 7. Because it has a major impact on your credit, Chapter 13 should only be used as a last resort.
A Chapter 13 petition for bankruptcy will likely necessitate a $500 to $600 monthly payment, especially for debtors paying at least one automobile through the payment plan. However, since the bankruptcy court will consider a large number of factors, this estimate could vary greatly.
The plan need not pay unsecured claims in full as long it provides that the debtor will pay all projected disposable income over an applicable commitment period, and as long as unsecured creditors receive at least as much under the plan as they would receive if the debtors assets were liquidated under chapter 7.