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 Chapter 13 - Reorganization
Chapter 13 bankruptcies are designed to restructure the debts of an individual.  In a Chapter 13 bankruptcy case, individuals file a Plan to repay some or all of their debts over a period of time (usually 60 months).  The amount that must be paid to creditors is determined by the by an individual’s specific income and expenses.  When individuals file a Chapter 13 case, they will begin to make one monthly payment to the Chapter 13 trustee as determined by their Plan.  The trustee will distribute the payment to the creditors.  Once all of the Plan payments are made, the individual will be granted a discharge.
  

 
Disclaimer
The information provided in this website is meant only as a general description of the current laws as of the date of the writing. It is not meant to be an exhaustive discussion of all the nuances of bankruptcy law and is intended to be only an overview. Many issues may appear simpler than they are, and an individual should always contact an attorney to obtain a complete, accurate interpretation of the law given the individual's particular circumstances. Bankruptcy Law Center, LLC makes no representations as to how the law would affect a particular situation and intends only to illustrate areas of concern and give information.

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