Chapter 13 Bankruptcy Attorney In Hackettstown, New Jersey

Chapter 13 bankruptcy is a court-supervised debt adjustment procedure. This debt relief option is available to individuals with regular income who have unsecured debts totaling less than $383,175 and secured debts totaling less than $1,149,525.

The Chapter 13 debtor files a bankruptcy petition that is virtually identical to the Chapter 7 petition, including a detailed financial statement and listing of assets and liabilities.

The Chapter 13 debtor files a plan that provides for repayment of debts over a three- to five-year period. The plan is usually a five-page form. The court appoints a Chapter 13 trustee, whose job it is to receive payments from the debtor and disburse funds to creditors.The Chapter 13 trustee acts as a disbursing agent, not as a liquidating trustee. The debtor remains in possession of all of his or her property, both exempt and nonexempt. Upon completion of payments under the plan, the debtor typically receives a discharge of remaining debts, even if he or she has paid less than 100 percent of the debt. There may be some exceptions.