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In the restructuring plan, the debtor describes how they will repay the creditors and meet other financial obligations such as payroll and other taxes. The creditors review the plan and vote to approve it. Then, the court can approve the restructuring plan, and the debtor can begin implementing it.
This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
The plan of adjustment is a document that provides for the treatment of the various classes of creditors claims against the municipality. The Bankruptcy Code requires a debtor to file a plan. The plan can be filed along with the bankruptcy petition or at such later time as the court fixes.
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.
Debt settlement companies, also sometimes called debt relief or debt adjusting companies, often claim they can negotiate with your creditors to reduce the amount you owe. Consider all of your options, including working with a nonprofit credit counselor and.
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