Chapter 13 Bankruptcy Help
Chapter 13 Bankruptcy Basics
Chapter 13 bankruptcy in Colorado is a very common form of bankruptcy. With this type of bankruptcy, the court does not require the debtor to give up any assets but instead requires that he or she submit a payment plan for approval. This payment plan will show how the debtor can pay all his or her basic needs and then still have enough to make payments to creditors.
The payments that the debtor makes to the creditors are not the normal payments but are usually smaller payments that are more manageable. The payment plan will normally last from 3 to 5 years and upon completion, the court will give the debtor a discharge of any remaining debt that is eligible for discharge.
Who Should File Chapter 13?
With Chapter 13 there is an income requirement. As mentioned above, the debtor’s income must be large enough to pay all basic needs and still have enough to pay creditors. This is the main requirement that must be met if a person wants to file Colorado Chapter 13.
Many people who file this type of bankruptcy often express a wish to pay off their debt but simply need some help doing so. The people who file Chapter 13 also tend to have many non-exempt assets that the court would normally take if they filed Chapter 7 Fort Collins bankruptcy. Our attorney is experienced with Chapter 13 and can help you decide what is best for your situation.