A trustee is appointed to take over your property. Any property of value can be sold or turned into money to pay your creditors. You may be able to keep your home and your automobile if the loan payments are all current.
Used mostly by businesses, this chapter is designed for the reorganization of a business but is also available to consumer debtors. However, its provisions are quite complicated, and any decision for an individual to file a Chapter 11 petition should be review by a certified bankruptcy law specialist. In Chapter 11, you may continue to operate your business, but your creditors and the Court must approve a plan for you to repay your debts. There is no trustee unless the Judge decides that one is necessary. If a trustee is appointed, the trustee takes control of your business and property.
Similar to Chapter 13, this method is designed to permit family farmers and fishermen to repay their debts over a period of time from future earnings. The eligibility requirements are restrictive, limiting its use to those whose income arises primarily from a family-owned farm or commercial fishing operation.
Designed for individuals with regular income, this method allows debtors to pay all or part of their debts in installments over a period of time. You are eligible for Chapter 13 only if your debts do not exceed certain dollar amounts set forth in the Bankruptcy Code.
Under Chapter 13, you will file a plan with the Court to repay your creditors all or part of the money you owe them, using your future income or earnings. The period allowed by the court to repay your debts is usually between three and five years, depending on your income and other factors. The court must approve your plan before it takes effect.
After you have completed the payments under your plan, your debts are generally discharged except for child support, alimony, and other support obligations; most student loans; certain taxes; most criminal fines and restitution obligations; certain debts that were not properly listed in your bankruptcy papers; certain debts for acts that caused death or personal injury; and certain long-term secured obligations.