Individuals who have hit on bad times can file for bankruptcy under Chapter 7 or Chapter 13 (also known as the wage earner plan). The type of bankruptcy which is most appropriate for an individual is decided via bankruptcy means test. Chapter 13 allows debtors to retain some property and make payments over a span of 3-5 years towards their debts as part of a repayment plan. This type of bankruptcy can only be chosen when an individual has some amount of disposable income and can make regular payments as per the decided repayment plan.<\/p>\n
For debtors who consider Chapter 13 as their way out of bankruptcy, lawyers of Sacramento based law firm Recovery Law Group<\/a> elaborate, the amount to be repaid depends on your monthly income, the type of debt you have (secured or unsecured) and your ability to make payments. Some debts such as student loan, taxes, etc. need to be paid while others may be discharged at the end of the repayment plan after a certain percentage of debt has been paid. The debtors have to follow the guidelines set by the bankruptcy court for repayment plans. Some examples of the guidelines include:<\/p>\n If you are looking to find out more about the bankruptcy process, debt relief and the potential benefits of bankruptcy<\/a>, it is important that you consult with a bankruptcy advocate soon.<\/p>\n\n <\/p> \n
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