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Plan for repayment are firm and detailed. Debts are streamlined into one combined, regularly-scheduled payment. Payments usually run three to five years. A person filing for bankruptcy is allowed to keep his or her property.
Youll still have to pay court-ordered alimony and child support, taxes, and student loans. The consequences of a Chapter 7 bankruptcy are docHub: you will likely lose property, and the negative bankruptcy information will remain on your credit report for ten years after the filing date.
If there are no problems with your plan and no parties object, or any objections are determined in your favor, your plan is confirmed. Once this happens, you and your creditors are bound by the terms of your plan. As long as you comply with your plan, creditors have to accept the terms in payment of their claims.
Debts you owe on fines or restitution orders contained in the sentence for conviction of any crime (yes, even traffic tickets) may not be discharged in Chapter 13.
In Chapter 13 bankruptcy, youre able to keep expensive property like a house or a luxury car so long as you make monthly payments under a three-to-five year repayment plan. But unlike Chapter 7 which results in a discharge of debts in 96% of cases, only about 40% of Chapter 13 cases end in discharge.
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In order to get debts discharged through Chapter 13, you must wait four years after filing a Chapter 7 bankruptcy.
Plan confirmation serves as a formal approval of your plan. It locks it in stone so-to-speak. This is a big milestone in Chapter 13 because you normally get certain privileges back when your plan is confirmed. You can start rebuilding your credit, for example. It also makes it easier to get a new car.
An order confirming the chapter 13 plan is a Bankruptcy judges approval of the Debtors proposed chapter 13 repayment plan.
The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.
This includes selling homes, cars, jewelry, etc. Also do not not incur debt, use credit, credit cards, or enter into leases while in Chapter 13 without Bankruptcy Court approval, except in the case of an emergency for the protection and preservation of life, health or property.

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