How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
A new question is answered every 9 seconds
Ask a Finance question
Type Your Finance Question Here...
characters left:
5 Financial Professionals are Online Now

Chapter 13 Bankruptcy Rules

A Chapter 13 Bankruptcy is one of the most common forms of bankruptcy. A Chapter 13 Bankruptcy helps an individual to adjust their debt if they have a regular income. A person may be allowed to keep all of their property in most situations under a Chapter 13 Bankruptcy. However, there may be many rules and regulations that a person filing a Chapter 13 may have to follow. Given below are some of the most commonly asked questions about Chapter 13 Bankruptcy by the Experts.

How long will a Chapter 13 Bankruptcy stay on an individual’s credit score?

A Chapter 13 Bankruptcy may remain on an individual’s credit score for a period of 7 years from the date when it was discharged or a period of 10 years from the date it was filed.

Under what circumstances would a person be eligible to lower their payments in a Chapter 13 Bankruptcy?

A person may be eligible to lower his/her payments under a Chapter 13 Bankruptcy under the following circumstances:
The person’s income passes the means and median test
There is an increase in the person’s basic living expenses due to additions in the family
The individual’s disposable income has considerably come down for the past 3 months due to unexpected expenses or loss in income
The person cannot stick to the payment plan that he/she agreed upon due to his/her current income.
The person’s income has been affected due to an illness, unemployment, divorce or death of a spouse.
The person has had financial trouble which has affected the possibility of him/her earning more money
The person’s auto loan value can be got down as per the new rules and regulations.

What happens if a person dies in the middle of a Chapter 13 Bankruptcy?

When a person files for a Chapter 13 Bankruptcy, they enter a 3-5 year plan and agree to make monthly payments to the trustee. If the individual dies in the middle of the bankruptcy, the person’s estate will have to continue with the agreed plan. If, for some reason, this is not possible, the creditors may petition to convert the Bankruptcy to a Chapter 7.

What can a person do if a creditor tries to settle a debt that was dismissed in bankruptcy?

If a creditor tries to settle a debt that was dismissed in bankruptcy, the person may send the creditor a letter informing him/her that the debt was dismissed in the bankruptcy. The individual may give the creditor the state and case number for reference.

Can one use the 403b retirement fund to pay the federal taxes if one has filed for a Chapter 13 Bankruptcy?

One may use the 403b retirement fund to pay federal income tax if one is not employed with the agency that set up the 403b plan.

What are the next steps that a person needs to take after filing for a Chapter 13 Bankruptcy?

Once a Chapter 13 Bankruptcy has been filed, an individual may come up with a guaranteed plan to repay the debts and creditors. The individual may get the approval of the court for the plan. Once the court approves the plan, it will be the individuals’ responsibility to stick to the plan and make it work. The individual may pay the trustee regularly. The payment may either be made directly to the trustee or through payroll deduction. The person may also have to avoid getting a new debt without asking the trustee as it can affect their ability to repay already existing debts.

You may not know what to do if you are faced with financial difficulties. Debts acquired over a period of time can add to these troubles leaving you helpless and in the fear of losing all that you may have. One of the things that you can do when faced with such a situation is file for a Chapter 13 Bankruptcy. However, there are many rules that you may have to follow while doing so. Understanding and obeying these rules is of upmost importance. You may ask an Expert if you do not understand any aspect of a Chapter 13 Bankruptcy or need more information about it.
Ask a Finance question
Type Your Finance Question Here...
characters left:
5 Financial Professionals are Online Now

How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Ron

    ASE Certified Technician

    Satisfied Customers:

    21214
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
< Last | Next >
  • http://ww2.justanswer.com/uploads/FO/fordguy4u/2011-12-17_222940_HPIM1257.64x64.JPG Ron's Avatar

    Ron

    ASE Certified Technician

    Satisfied Customers:

    21214
    23 years with Ford specializing in drivability and electrical and AC. Ford certs and ASE Certs
  • http://ww2.justanswer.com/uploads/lyeung1/2010-07-25_032152_tn_IMG_0241.JPG Dr. Y.'s Avatar

    Dr. Y.

    Urologist

    Satisfied Customers:

    18396
    I am fellowship trained specializing in general urology and reconstructive urology.
  • http://ww2.justanswer.com/uploads/docjohn174/2008-12-13_170143_johnask.jpg John's Avatar

    John

    Home Appliance Technician

    Satisfied Customers:

    13453
    Appliance repair business owner for over 43 years.
  • http://ww2.justanswer.com/uploads/MU/multistatelaw/2011-11-27_173951_Tinaglamourshotworkglow102011.64x64.jpg Tina's Avatar

    Tina

    Lawyer

    Satisfied Customers:

    8493
    JD, BBA Over 25 years legal and business experience.
  • http://ww2.justanswer.com/uploads/dermdoc19/2010-09-30_160749_Photo_122807_015.JPG dermdoc19's Avatar

    dermdoc19

    Dermatologist

    Satisfied Customers:

    3856
    30 years practice in general and cosmetic dermatology
  • http://ww2.justanswer.com/uploads/BI/birddoctor/2012-6-22_173214_birddoctor.64x64.png Dr. Pat's Avatar

    Dr. Pat

    Bird Veterinarian

    Satisfied Customers:

    3384
    25+ years working primarily or exclusively with birds
  • http://ww2.justanswer.com/uploads/RY/rydergar/2012-6-6_192240_IMG0328.64x64.JPG Dr. Gary's Avatar

    Dr. Gary

    Cat Veterinarian

    Satisfied Customers:

    3299
    DVM, Emergency Veterinarian, BS (Physiology)