Get Form 06 Ch 13 Attorney Fee Election.doc - Moeb Uscourts

Chapter 13 is a form of bankruptcy that allows debtors to restructure their debts and pay them off over a period of three to five years under court supervision. Filing for Chapter 13 bankruptcy can stop foreclosure proceedings that would have led to the seizure of the debtor's home.

The discharge releases the debtor from all debts provided for by the plan or disallowed (under section 502), with limited exceptions. Creditors provided for in full or in part under the chapter 13 plan may no longer initiate or continue any legal or other action against the debtor to collect the discharged obligations.

It refers to a United States bankruptcy proceeding that allows you to develop a repayment plan lasting for three to five years. The bankruptcy court must approve your plan for you to enter Chapter 13. This type of bankruptcy gives you a chance to repay your creditors without losing your valuable assets and property.

Chapter 7 asset cases require that the trustee liquidate the assets which often takes several years. Chapter 13 cases remain open as long as the plan payments are being made, generally for three to five years after the plan has been confirmed.

Chapter 13 Bankruptcy Means Test and Debt Limits. In order to be able to file for Chapter 13 bankruptcy, there are a few income limits an individual has to meet. First, the individual has to have less than $419,275 of unsecured debt. This is a part of the Chapter 13 debt limit.