Determining If Chapter 13 Bankruptcy Is The Right Choice For You

Chapter 13 Bankruptcy allows you to file a claim in court to reorganize your debts. This debt-relief option allows you to include most of your debts into a bankruptcy claim that enables you to pay smaller payments over a longer period of time. It allows you to settle your debts without exceeding your budget. Your bankruptcy attorney will advise you throughout this process to ensure that your interests are protected.

Inclusion of Debts

In order for you to include a debt into a bankruptcy claim, the creditor must approve the inclusion. Once your claim is filed through the court, a hearing is scheduled in which all of your creditors have a chance to voice their opinions about the inclusion. In some cases, the judge will discharge the debt before the hearing. Most common debts that are discharged are credit card debts. The reason for this is that credit card companies possess insurance that provides them with amble compensation when a debt is charged off.

Once the creditors approve the inclusion of the debt into the bankruptcy, the judge signs off on the bankruptcy. A scheduled payment date is established along with the exact amount you will pay. The judge will explain these details at your hearing.

Reorganization of Your Debts

After the bankruptcy is approved, the court will organize your debts in a manner that you are paying off one debt at a time until they are all paid off. They are paid in the order that is established by the court. Once the debt is paid it is discharged from the bankruptcy claim. The listing for the debt is removed from your credit report.


Chapter 13 allows you to reorganize your debts to provide an adequate debt-relief option. Your creditors must approve the inclusion of any debts before they are included in your bankruptcy claim. This procedure occurs during your scheduled bankruptcy claim. Once your bankruptcy is approved you will receive information related to the starting date for your payments along with the required amount. The debts are discharged from the chapter 13 bankruptcy after they are paid in full.

Laura Margulies & Associates LLC

8957A Edmonston Rd,
Greenbelt, MD, US, 20770
Follow Us:


Share This Post On