Chapter 13 Transcript

RICK REDMAN: The Chapter 13 does many of the same things as a Chapter 7 such as discharge most of your unsecured debts, allow you to keep most of your property, and stop creditor actions such as garnishments, lawsuits, repossessions and foreclosures. In a Chapter 13 you're going to be required to make thirty-six to sixty monthly payments based on your net disposable income or your available income on a monthly basis. When that money is paid to the trustee he is instructed as to what to do with it and that can be things like curing a house mortgage, taking care of a bad car loan, paying taxes, and other special sort of circumstances. You may be required to do a Chapter 13 if you have a previous bankruptcy or if your income is too high or if you have assets that you wish to protect that we can't protect in a Chapter 7. The Chapter 13 is a useful tool for solving the problems that a Chapter 7 can't solve.