Chapter 13 Bankruptcy and Your Property

Chapter 13 bankruptcy is one of the most commonly filed forms of bankruptcy in the country. Many people wonder what will happen to their property during the filing of Chapter 13 bankruptcy. Here are a few things to consider about Chapter 13 bankruptcy and your property.

Property

With chapter 13 bankruptcy, you are not going to have to repay your debts by giving up your property in most cases. The design of chapter 13 bankruptcy allows you to come up with a payment plan in order to repay your creditors the money that you owe them. Because of this, you will simply have to make monthly payments to your creditors instead of giving them your assets.

Repossession

Whenever you file Chapter 13 bankruptcy, the judge is going to issue an automatic stay. This means that your creditors cannot take any further actions against you while you are engaged in the repayment plan. For example, if you are late on your car payments, once the automatic stay has been issued, the lender cannot repossess your car. However, if you do not stick to your repayment plan, they could eventually take the necessary steps to repossess your car. If you want to avoid losing your property, you need to do what the court says.

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