Chapter 13 Bankruptcy, also known as the “wage earners plan” enables individuals the opportunity to repay some or all of their debt under their name in better terms. It is for those who have a stable income but need a prolonged time frame in order to pay their creditors back. Under the supervision of the courts and an attorney’s contribution, adjustments and/or reductions will be implemented in a plan so the debtor could pay off the debt within a five-year time frame.

The plan includes what payments will be made to whom. At the end of the plan, the person would get relieved of any remaining debt. Some payments can be less than the original debt owed but others would have to be complete. The amount of pay depends on the type of debt.

Also note, filing a Chapter 13 bankruptcy will not get you out of debts that you may owe for school loans, taxes, or any court issued payments. It is mostly for medical, credit cards and other similar type debts. It is a repayment plan and allows you to repay most debts with a lower than original total.

For more specific answers to your debt problems contact attorneys at Conlon & Fong for your free consultation. Call (916) 971-8880 now to speak with an experienced bankruptcy attorney.