Chapter 13

(redirected from Chapter 13 Bankruptcy)

Chapter 13

A section of the U.S. Bankruptcy Code that deals with reorganization of debt of wage-earning individuals, including the opportunity to save their homes from foreclosure.

Chapter 13

A form of bankruptcy in which a person or company reorganizes his/her/its debts so they are repaid over a period of three to five years. This form of bankruptcy is most commonly used if one continues to have significant income even though one's debts have become too burdensome. A disadvantage to Chapter 13 is the fact that one's debts are not discharged. However, Chapter 13 may allow one to maintain ownership of assets that would otherwise be liquidated. It is also called a wage earner plan. See also: Chapter 7, Chapter 11, Best interests of creditors test.
References in classic literature ?
They were geological experts sent to investigate the old question of the alleged supply of gold from the rocks round here, upon which (as it was said) the small city-state had so long maintained its credit and been able to negotiate with its neighbours even under the ceaseless bombardment of bigger armies.
Some clients will have a choice between filing a Chapter 7 or a Chapter 13 bankruptcy petition, while others will be limited to a Chapter 13 petition because they fail the "means test" described above.
convert to Chapter 13 bankruptcy, although, as this Note explains,
According to TMZ, the documents were filed in January in the Eastern District of Virginia, Hawkins filed for Chapter 13 bankruptcy, which allows people to reorganize their finances and pay down debt over several years.
WHEN ALPHONZO KERSHAW FELL BEHIND ON THE mortgage of a second home last year, he filed for Chapter 13 bankruptcy, which would prevent a foreclosure and enable him to pay back more than $40,000 in past due mortgage payments and real estate taxes over a five-year period.
If a home mortgage lender offers to release other property held as collateral, clients should consult an attorney to avoid giving up valuable rights in a subsequent Chapter 13 bankruptcy.
But many, particularly those in black communities, have been filing Chapter 13 bankruptcy, which carries a high risk of failure, leaving themselves vulnerable to end up with yet another mountain of debt, instead of a fresh start.
We collect a random sample of 497 Chapter 13 Bankruptcy schedules filed in the Eastern District of Washington in 2003, 2005, and 2007, all of which were obtained through the Public Access Electronic Court Records (PACER) System.
Opponents also fear that making this change to the bankruptcy code during the current financial crisis could prompt an avalanche of Chapter 13 bankruptcy petitions, which could overwhelm the courts.
Although the some of the legislation enacted since the beginning of the foreclosure crisis provides incentives to loan holders to renegotiate mortgages, (10) they are insufficient without permitting a cramdown for primary residence mortgages in Chapter 13 Bankruptcy proceedings.
Coleman (In re Coleman), (4) the United States Court of Appeals for the Ninth Circuit considered whether a court may make an undue hardship determination for student loan discharge under a Chapter 13 bankruptcy substantially in advance of payment plan completion.
lt;p>In notification letters made public, the bank said it had redacted sensitive information in Chapter 13 bankruptcy proof-of-claim forms that were filed electronically, but that the information turned out to be viewable "as a result of the deficiency in the software used to save imaged documents.