Chapter 13

(redirected from Chapter 13 Proceedings)

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 periodicals archive ?
The waiting period between two successive Chapter 13 proceedings is two years (11 U.
It also explains the "means test" under which an individual debtor may be eligible for debt relief in bankruptcy via a Chapter 13 proceeding and not a liquidation.
The IRS can treat the 2007 obligation as largely secured by its lien, meaning it will receive nearly full payment of a debt that otherwise would be eliminated by the Chapter 13 proceeding.
74) Where a return is prepared by the IRS based on knowledge of IRS employees, testimony, and other sources, and not signed by the debtor, any associated tax would survive in a Chapter 13 proceeding.
The 2005 bankruptcy legislation essentially eliminated what had been known informally as the "super discharge," (45) by reducing the types of debts that can be discharged without being paid in a Chapter 13 proceeding.
19) In lieu of having the Chapter 7 petition dismissed, an individual debtor who fails the means test, and cannot otherwise prove that the Chapter 7 filing is not abusive, has the option of converting his or her bankruptcy case to a Chapter 11 or Chapter 13 proceeding.
A further difference is that, unlike a liquidation, a Chapter 13 proceeding can be used to discharge priority taxes paid with a credit card, provided the debtor originally intended to pay the card in full.
If B filed his 2007 return before May 1, 2010, his 2007 tax debt may be eligible for discharge in any type of Chapter 13 proceeding, since the return was submitted more than two years before the May 1, 2012, bankruptcy petition.
However, in chapter 13 proceedings debtors may request that a lien be divided into its secured and unsecured portions.