if you stick with your payment plan to the end, then any remaining consumer debt and eligible secured debts will be discharged. You may be left with debts that arenot discharged, such as student loans. Chapter 13 discharge is personal, meaning that any cosigners may still be obligated to a...
A sole proprietor or single-member LLC can get the unsecured debt discharged and reorganize both personal and business debt through their Chapter 13 plan. For example, a Chapter 13 debtor can: “Strip off” a second mortgage or HELOC as unsecured and have is discharged if the current value o...
Chapter 13 bankruptcy: This involves creating a repayment plan to pay back a portion of your debt over a three- to five-year period. After completing the repayment plan, you may be able to have your remaining unsecured debt discharged. While Chapter 13 doesn’t provide the immediate relief ...
With the Chapter 13 filing, “The property is worth less than the amount owing on the first [mortgage] and you strip away the HELOC,” says Esbin. “Because the ongoing debt has been discharged, you don’t need to pay anything on that HELOC.”What strategies can help safeguard your ...
Chapter 13: The Chapter 13 process lets those in financial trouble keep their property and pay debts over time, usually three to five years. Chapter 15: This is the most recent addition to the bankruptcy code; it addresses international bankruptcy issues. Tip If you're considering taking out ...
For Chapter 13, the repayment plan can last three to five years, after which the remaining qualifying debt is discharged. Long-Term Effects of Bankruptcy Bankruptcy will stay on your credit report for 7 to 10 years, depending on the type filed. During this time, obtaining new credit, ...
What Is Chapter 13 Bankruptcy? Chapter 13 bankruptcyis typically for individuals, wage earners and sole proprietors, or one-person businesses. It is often called thewage earner’s planbecause it allows a person with a regular income to form a plan to repay all or part of their debts. ...
A bankruptcy dischargeis the desired result of a bankruptcy case. It means there's a court order in your bankruptcy case that removes your debts. You no longer have to pay your creditors once the court has discharged your debts. Bankruptcy discharge occurs in both Chapter 7and Chapter 13 ban...
Chapter 13 bankruptcies, however, don't have the same requirements, Bunce says, "as long as you have a one-year payment history with no late payments and approval by the court." Find out more about your best mortgage loan options now. ...
Chapter 7 is one of two types of bankruptcy most commonly filed by individuals (the other is Chapter 13). In a Chapter 7 bankruptcy, many of the debtor's assets will be liquidated (sold off) by a trustee and the proceeds will be used to pay their creditors. After that, most of the ...