“God and I are not equals; I can’t bring a case against him.   We’ll never enter a courtroom as peers.  How I wish we had an arbitrator to step in and let me get on with life. . .to free me from this terror so I could breathe again.”-Job 9:32-34

Job’s description of the ideal Arbitrator isn’t too far from the Chapter 13 bankruptcy trustee’s job description: the trustee bridges the gap between the moneylenders and the debtor.

In the original petition the debtor itemizes monthly income and expenses.  Prior to meeting with the trustee the Chapter 13 debtor prepares a debt repayment plan, which has four basic components:

  1. Monthly living expenses
  2. Regular installment payments
  3. Past-due amounts on secured debts
  4. Payments to unsecured creditors

The Chapter 13 Plan

If the debtor wishes to retain any item purchased on credit with a security agreement, the debtor must maintain monthly payments.  If the debtor is $1,000 behind on her car payment, the $1,000 must be paid over a period of three to five years (the length of the repayment plan).  Special rules apply to home mortgages, and the professionals at Henley and Henley can walk you through that process. 

Any remaining money will be paid monthly for distribution among unsecured creditors.  After the repayment period, all remaining unsecured debt is discharged.

Chapter 13 bankruptcy can be an excellent option for consumers whose debt has become unmanageable.  Call today for your free consultation, and take the first step towards breathing again and getting on with life.