One of the more puzzling aspects of Chapter 13 bankruptcy for folks who've never filed before is the seemingly open-ended nature of restructuring plans. The law requires you and your Chapter 13 bankruptcy attorney to present a plan in good faith that doesn't take advantage of the system. At the same time, you don't want to present a plan that might leave you short of the goal at the end of the three to five years you'll likely have to pay.
21 October 2020
In the bankruptcy system, there are two basic ways to address a debtor's situation. These are restructuring and liquidation. Restructuring means that the creditors may have to accept a smaller amount of what's owed to them, but they'll largely get paid as long as the debtor follows the plan. Liquidation is a more aggressive process that oftentimes leads to much of what the debtor owns being sold. Here's how that idea fits into chapter 7 bankruptcy law.
4 May 2020