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Background. A chapter 13 bankruptcy is also called a wage earners plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.
The creditor matrix is the list of creditors and their addresses that everyone has to provide to the Court when filing bankruptcy. The Verification of Creditor Matrix is basically the signature page that goes with it.
In a Chapter 7 case, you will typically receive an order discharging most of your debts within three or four months. Chapter 13 usually requires you to make monthly payments over a three-year to five-year period before you will receive a discharge.
The biggest difference between Chapter 7 and Chapter 13 is that Chapter 7 focuses on discharging (getting rid of) unsecured debt such as credit cards, personal loans and medical bills while Chapter 13 allows you to catch up on secured debts like your home or your car while also discharging unsecured debt.
Chapter 13 and debt Firstly, all Chapter 13 payment plans must repay all priority claims and administrative expenses in full. These types of debts include taxes, child support, alimony, attorneys fees and court costs.
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Filing for Chapter 7 bankruptcy eliminates credit card debt, medical bills and unsecured loans; however, there are some debts that cannot be discharged. Those debts include child support, spousal support obligations, student loans, judgments for damages resulting from drunk driving accidents, and most unpaid taxes.
A Chapter 13 bankruptcy can remain on your credit report for up to 10 years, and you will lose all your credit cards. Bankruptcy also makes it nearly impossible to get a mortgage if you dont already have one.
The main advantage to pursuing a Chapter 13 bankruptcy resolution is the fact that this form of bankruptcy generally offers much more flexibility and freedom than a Chapter 7 bankruptcy resolution. Under Chapter 7, you will need to liquidate most of your assets and sell off property to pay a lump sum resolution.
Chapter 13 bankruptcy The person files a plan with the bankruptcy court and agrees to pay all debts such as car loans, mortgage arrears, and unseen debts in an affordable monthly payment plan over a three to five-year period. In return the debtor can keep the property (home, vehicle and other assets).
If you filed for bankruptcy to avoid foreclosure or are behind in house payments, your Chapter 13 plan payment could be more or less $1500 per month. Additionally, high income, high debt Chapter 13 filers would usually be required to make payments between $2000 and $3000, or even more.

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