Chapter 13 Bankruptcy

Chapter 13 bankruptcy is also known as a reorganization. Under this chapter of the bankruptcy code, an eligible individual or business who makes regular income can provide a repayment plan to its creditors in exchange for keeping specific real or personal assets. Chapter 13 bankruptcy does have debt limits for both secured and unsecured which can be found under Section 109(e) of the bankruptcy code. Currently, as of April 2010, the chapter 13 debts limit on secured creditors is $1,081,400.00 and the limit for unsecured creditors is $360,465.00

The repayment plan varies from 3 to no more than 5 years (36 to 60 months respectively), upon which a debtor must satisfy the payment requirements imposed upon the confirmation of their chapter 13 plan of reorganization. Upon successful completion of their bankruptcy plan of reorganization through its payment requirements and all other bankruptcy court requirements, a debtor can eliminate all remaining dischargeable debt. Examples of debts that are non-dischargeable include but are not limited to tax obligations, domestic support obligations and other non-dischargeable debt that can be find under Section 523 of the bankruptcy code.

Nonetheless, back taxes, student loans and other non-dischargeable debt can be repaid back in a chapter 13 context over the course of the plan of reorganization. Individual situations need to be review on a case by case level so it will be important to consult an attorney and get specific information in regards to your case.