Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

Chapter 13

Read a random definition: insurer

A quick definition of Chapter 13:

Chapter 13 is a part of the law in the United States that helps people who have a regular income and are struggling to pay their debts. It allows a person's earnings to be collected by a trustee and paid to creditors through a court-approved debt-repayment plan. This plan is sometimes called a wage-earner's plan or an income-based plan. The debtor can propose a plan to extend or reduce the balance of their obligations and receive a discharge from unsecured debts upon completion of the payments under the plan. If the plan is made in good faith and pledges all of the debtor's disposable income for three years, it will be confirmed. Chapter 13 helps people get back on track with their finances and pay off their debts over time.

A more thorough explanation:

Chapter 13 is a section of the United States Bankruptcy Code that allows individuals with a regular income to create a court-approved debt-repayment plan. This plan is sometimes called a wage-earner's plan or an income-based plan. The plan is administered by a trustee who collects the debtor's earnings and distributes them to creditors according to the plan.

Under Chapter 13, the debtor can propose a plan to extend or reduce the balance of their obligations and receive a discharge from unsecured debts upon completion of the payments under the plan. The plan must be made in good faith and must pledge all of the debtor's disposable income for three years. If the plan meets these requirements and creditors receive what they would have received under Chapter 7, it will be confirmed.

For example, if John has a regular income and owes $50,000 in unsecured debt, he may file for Chapter 13 bankruptcy. He proposes a plan to pay $500 per month for three years, totaling $18,000. The trustee collects John's earnings and distributes the payments to his creditors according to the plan. At the end of the three years, John receives a discharge from his remaining unsecured debt.

Another example is Sarah, who owns a small business and has a regular income. She owes $100,000 in debt, including $50,000 in unsecured debt. Sarah files for Chapter 13 bankruptcy and proposes a plan to pay $1,000 per month for five years, totaling $60,000. The trustee collects Sarah's earnings and distributes the payments to her creditors according to the plan. At the end of the five years, Sarah receives a discharge from her remaining unsecured debt.

Chapter 12 | Chapter 20

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
Dkk
19:42
SEO is big money
2016 pushed the conservative party into populism irreversibly
Dkk
19:43
Maybe, but if this is populism, then every election is populist.
19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
LSD+ is ad-free, with DMs, discounts, case briefs & more.