Welcome to LipBlog

There are many chapters that make up the Bankruptcy Law. Because of this, an individual can consider different forms or ways in filing for a bankruptcy declaration. One of these forms is the Chapter 13 Bankruptcy.

What does this chapter say?

Chapter 13 of the Bankruptcy Law is concern with the repayment of a debtor without taking away his assets and properties. Though, a debtor, who files under this declaration, should have a stable income and devote his future earnings to the payment of his debts.

With this declaration, the filer will agree to devote his future income in the payment of his debts. This process would usually take three to five years depending on the situation and circumstances the debtor is in. If the borrower meets the state’s median income, the payment will run for three years only with some considerations on his expenses. The repayment can be extended to as much as five years but will not go beyond the said duration.

This form of bankruptcy case is best if the debtor intends to keep his assets and properties. As long as the government-mandated rules and regulations are met by the debtor, there is no need to liquidate his asset and distribute it to the creditors. Unlike Chapter 7, the properties and assets can be kept by the debtor.

As simple as it may seem, the knowledge of an expert lawyer in this matter should still be sought after. He is still the one who can best explain the matter.