Crete Bankruptcy Attorney On What It Means To File Chapter 13 bankru...

A Chapter 13 is a 3 to 5 year reorganization plan, sometimes a little bit shorter, depending on the exact details of it in which the debtor proposes a plan of reorganization.  As part of that plan, basically, every form of debt is addressed and managed.  Chapter 13 by virtue of this plan can do a lot of things that Chapter 7 can’t.  Chapter 13 has a lot of teeth.  It’s got a lot of tools in its toolbox.  For example, Chapter 13 can strip off a second mortgage that is not secured by the property.  Chapter 13 can reorganize an auto loan.  Chapter 13 can pay back parking tickets or toll way violations.  Chapter 13 can even pay back child support.  It can even deal with recent tax debt, as well.  Chapter 13 is very broad in its ability, and through the payment plan a lot of debt can be reorganized.  It’s sort of like debt consolidation except the plan does have teeth.  Once a bankruptcy plan is accepted by the court under Chapter 13, its terms are binding; and so long as you complete the plan, whatever the plan says, goes.