The debtor has to market any assets not exempt in order to satisfy creditors. All remaining debts will be paid off when the assets are removed.
It is possible that the debtor will have to pay back certain debts, such as taxes or student loans.
Chapter 13 is a method which creates a repayment program for debts that are to be paid over a time period of 3 to 5 years. Debtors can keep all their assets, as well as pay debts off over the course of. Any remaining debts will usually be discharged after the repayment plan has been executed.
Risks of loss of assets and damage to credit could be severe consequences of bankruptcy. The bankruptcy process can also impact the debtor’s ability to obtain credit later on. Certain debts can’t be discharged in this way.
Take note of the fact that law and procedure may differ from one jurisdiction to the next. Therefore, if you’re contemplating taking this route, get the help from a certified financial lawyer for assistance in the procedure.
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