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September 2017 Archives

Important points about repayment plans with a Chapter 13

For people in Pennsylvania who are filing for bankruptcy, the circumstances will dictate which chapter they will use. While Chapter 7 is a liquidation and is often viewed as the easiest course of action, some debtors want to keep a home and a motor vehicle. They are also wage earners meaning that the courts will steer them toward a Chapter 13 bankruptcy instead. With Chapter 13 there are repayment requirements. However, the debtor might not fully understand certain aspects such as how the repayment plan is structured, how much must be paid, how long the payment plan will last, and what happens if the payments are not made.

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