Read the latest Bankruptcy FAQs from Higgins and Associates
Does a person lose any legal rights by filing under chapter 13?
No. Filing under chapter 13 is a civil proceeding and not a criminal proceeding. Therefore, a person does not lose any legal or constitutional rights by filing a chapter 13 case.
Must all debts be paid in full under a chapter 13 plan?
No. While priority debts, such as debts for alimony, maintenance and support and debts for taxes, and fully secured debts must be paid in full under a chapter 13 plan, only an amount that the debtor can reasonably afford Fast be paid on most debts. The unpaid balances...
Is a person’s employer notified when he or she files under chapter 13?
In most cases, yes. Many courts require a debtor’s employer to make payments to the chapter 13 trustee on the debtor’s behalf. Also, the chapter 13 trustee may contact an employer to verify the debtor's income. However, if there are compelling reasons for not...
What debts may be paid under a chapter 13 plan?
Any debts whatsoever, whether they are secured or unsecured. Even debts that are nondischargeable, such as debts for student loans, alimony or child support may be paid under a chapter 13 plan.
Are the names of persons who file under chapter 13 published?
When a chapter 13 case is filed, it becomes a public record and the name of the debtor may be published by some credit reporting agencies. However, newspapers do not usually publish the names of persons who file under chapter 13.
What is a chapter 13 trustee?
A chapter 13 trustee is a person appointed by the United States trustee to collect payments from the debtor, make payments to creditors in the manner set forth in the debtor’s plan, and administer the debtor’s chapter case until it is closed. In some cases the chapter...
How does filing under chapter 13 affect a person’s credit rating?
It may worsen it, at least temporarily. However, if most of a person’s debts are ultimately paid off under a chapter 13 plan, that fact may be taken into account by credit reporting agencies. If very little is paid on most debts, the credit-rating effect of a chapter...
What is a chapter 13 plan?
It is a written plan presented to the bankruptcy court by a debtor that states how much money or other property the debtor will pay to the chapter 13 trustee, how long the debtor’s payments to the chapter 13 trustee continue, how much will be paid to each of the...
May a person whose debts are being administered by a financial counselor file under chapter 13?
Yes. A financial counselor has no legal right to prevent a person from filing any type of bankruptcy case, including a chapter 13 case.
What types of debts are dischargeable under chapter 13?
A full chapter 13 discharge must be granted upon the completion of all payments required in the plan discharges a debtor from all debts except: debts that were paid outside of the plan and not covered in the plan, debts for alimony, maintenance, or support debts for...
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