Re: Chapter 13 Details
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Posted by Tom
(66.91.144.122) on June 24, 2004 at 14:40:31:
In Reply to: Chapter 13 Details posted by S.G. on June 24, 2004 at 14:30:28:
Ch 13 requires you to pay your creditors what they would have recieved if you had filed a ch 7. For example, if you filed ch 7 and after claiming all the exemptions, the trustee would sell the non exempt items. If this would have resulted in $10,000, then your ch 13 plan has to pay back at least $10,000 over 3-5 years. This is the minimum amount you have to repay. The trustee will also look at your income v. expnses. So if your income after your basic expenses has a net of $1,000/month, the trustee could make you pay about $1,000/month as the plan over 3 years which could be more than what your creditors would get in a ch 7. Depending on what your house and your other assets are worth, you may be required to pay back 100% but it would be without interest over 3-5 years. You basically get put on a strict budget by the trustee but in the end you get to keep what you have if you make it through the plan.
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