Thedebtorthen pays an agreed-upon sum of money each month to the trustee, effectively consolidating the debts into a single monthly payment. The trustee, in turn, distributes the money to the debtor's creditors. Debtors have no direct contact with their creditors under Chapter 13 protection.1 ...
Once the plan is in place, the debtor must begin making regular, agreed-upon payments to the trustee, which the trustee will then distribute among the creditors. This will typically go on for three to five years, after which any remaining debts will be discharged, so long as the debtor ha...
Chapter 11 bankruptcyis used by businesses to restructure debts and assets. The company continues operating and repaying creditors, typically without supervision by a trustee. Chapter 13 bankruptcyis used by people with a regular income and debts under $2,750,000 to repay their creditors ...
This means that if the car is paid off, or has been a gift, and is worth more than $15,000, the trustee could seize it and sell it to pay off creditors. 5. Should I use an attorney for my Chapter 7 bankruptcy? It is possible to file bankruptcy on your own without the ...