Redwood City Bankruptcy: Discharge Debt with Chapter 13 BK

Although Chapter 13 Bankruptcy is a repayment bankruptcy and requires payments to be made to creditors, a significant portion of unsecured debt can be eliminated or discharged through a Chapter 13 Bankruptcy. Chapter 13 Bankruptcy may be a reorganization of an individual’s secured and unsecured debts, but most debt that is not paid off through the plan is discharged if the plan is completed successfully. Yet, the amount of unsecured debt that can be eliminated through a Chapter 13

Bankruptcy will be determined by several factors. The repayment plan lasts 36 – 60 months, and is enforced through the federal bankruptcy court and administered by a Chapter 13 Trustee. Creditors are paid according to a plan filed by the person claiming Chapter 13 Bankruptcy, and confirmed or approved by a bankruptcy judge.

After the filing of a Chapter 13 Bankruptcy, a creditor could file a claim that states the amount of debt he is owed with the bankruptcy court. Call one of our Redwood City attorneys for a consultation at Sagaria Law.

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