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Simple English definitions for legal terms

Chapter 13 bankruptcy

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A quick definition of Chapter 13 bankruptcy:

Chapter 13 bankruptcy is a way for people who owe money to deal with their debts. It allows them to make a plan to pay back their creditors over time using their future income. This is different from chapter 7 bankruptcy, which involves selling off assets to pay back creditors. Chapter 13 is only available to people who have a regular income and owe less than a certain amount of money. The benefit to creditors is that they can get some of their money back, and the benefit to the debtor is that they can keep their assets and avoid liquidation. Once the repayment plan is completed, the debtor can be released from their debts, but some debts like home mortgages and child support cannot be discharged.

A more thorough explanation:

Chapter 13 bankruptcy is a type of bankruptcy available to individuals with regular income who are unable to pay their debts. It allows the debtor to reorganize their debts and repay creditors over a period of time, usually three to five years. This type of bankruptcy is also known as "Adjustment of Debts of an Individual with Regular Income."

Chapter 13 bankruptcy has several advantages for both the debtor and creditors. For the debtor, it allows them to keep their assets and avoid liquidation. For creditors, it provides a stream of recovery from the debtor's future income, which is not available in a chapter 7 liquidation.

To be eligible for chapter 13 bankruptcy, the debtor must have a regular income and owe less than the maximum threshold set by the bankruptcy code. The debtor must also complete an approved course in financial management and certify that all domestic support obligations have been paid.

A discharge in chapter 13 bankruptcy releases the debtor from all debts included in the repayment plan, except for certain types of debts such as home mortgages and debts for alimony or child support. However, the discharge is broader than in chapter 7 bankruptcy, as it allows the debtor to discharge debts for willful and malicious injury to property, debts incurred to pay non-dischargeable tax obligations, and debts arising from property settlements in divorce or separation proceedings.

John is an individual with regular income who owes $50,000 in unsecured debts and $100,000 in secured debts. He files for chapter 13 bankruptcy and proposes a repayment plan to pay off his debts over five years. The plan is approved by the court, and John makes regular payments to the trustee, who distributes the payments to creditors. After five years, John completes the repayment plan and receives a discharge, which releases him from all debts included in the plan, except for certain types of debts.

This example illustrates how chapter 13 bankruptcy allows a debtor with regular income to reorganize their debts and repay creditors over a period of time, while preserving their ownership in existing assets. It also shows how a discharge in chapter 13 bankruptcy releases the debtor from most of their debts, providing them with relief from insolvency.

Chapter 12 bankruptcy | Chapter 13 plan

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
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JumpySubsequentDolphin
22:39
@splitty Oregon!
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JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
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