Chapter 13 Bankruptcy Explained (2021)

TL;DR

This video explains the Chapter 13 bankruptcy process, which is a longer and more complex process compared to Chapter 7 bankruptcy, and discusses the reasons why someone might choose to file for Chapter 13 instead.

Transcript

• Hey everybody, John Skiba here. And in this video, I'm going to explain to you the Chapter 13 bankruptcy process. This can be a complicated one for a lot of people. So I'm going to go step by step what the process is like, what you can expect and why you might choose to file a Chapter 13 bankruptcy. But if this is your first time here to my YouTu... Read More

Key Insights

• 🪘 Chapter 13 bankruptcy is a longer and more complex process compared to Chapter 7.
• 🧑 Qualification for Chapter 13 is based on income and whether a person has assets they want to keep.
• 🧑‍🏭 The plan payment in Chapter 13 is determined by various factors including disposable income, priority debts, and non-exempt assets.
• 📼 Chapter 13 allows individuals to keep their assets while making monthly payments to their creditors for a set period of time.
• 👻 The Chapter 13 process can be fluid, allowing for modifications to the plan if income significantly changes.

Questions & Answers

Q: How long does a Chapter 13 bankruptcy process typically last?

The Chapter 13 bankruptcy process typically lasts three to five years, with the length determined by household income.

Q: How is the plan payment amount calculated in Chapter 13 bankruptcy?

The plan payment amount is calculated based on disposable income, priority debts that must be paid in full, and the value of any non-exempt assets.

Q: Can someone choose to file for Chapter 13 bankruptcy if they don't qualify for Chapter 7?

Yes, people who don't qualify for Chapter 7 bankruptcy due to higher income often file for Chapter 13.

Q: What are the reasons someone might choose to file for Chapter 13 bankruptcy?

People might choose Chapter 13 if they don't qualify for Chapter 7, want to keep their assets, or recently received a discharge in a Chapter 7 and are not eligible for another one yet.

Summary & Key Takeaways

• Chapter 13 bankruptcy is a longer process compared to Chapter 7, lasting three to five years depending on household income.

• In Chapter 13, a payment plan is created where individuals make monthly payments to their creditors for a set period of time.

• The amount of the plan payment is determined by disposable income, priority debts, and the value of non-exempt assets.