Legal Question in Bankruptcy in New York

Chapter 13 bankruptcy is called the �reorganization� bankruptcy because it allows debtors to restructure and pay off debts within a three-to-five-year period while keeping some of their non-exempt property. This type of bankruptcy appeals to the following types of individuals:

* Individuals who have non-exempt property that they want to keep;

* Individuals that have debts that are not dischargeable under chapter 7 bankruptcy but can be discharged under chapter 13 bankruptcy. These include recent tax penalties and non support debts incurred in the course of a divorce, and

* Debtors who fail the means test under the chapter 7 bankruptcy.

Chapter 13 bankruptcy also allows debtors to pay off debts that can not be discharged in either chapter. These may include back child support obligations or defaults on home mortgages.

For more information about Chapter 13 Bankruptcy please visit: http://revzinlaw.com/bankruptcy-chapter-13

The answer has been provided for general informational purposes only and do not constitute legal advice. This information is not intended to create any relationship between the Law Office of Diana Revzin and the recipient. The information is not guaranteed to be correct, complete, or current.

You may have to pay out the value of your non-exempt assets to your creditors over 3-5 years via a chapter 13 payment plan.

You might want to schedule a consultation, usually free, with a bankruptcy attorney.

You can also find additional bankruptcy information at: http://vaughnweberlaw.com/category/bankruptcy/

*This is not legal advice