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Chapter 13 offers protection from creditors, debt relief

A person may feel at a loss when it comes to paying down debt in Pennsylvania. Their constant efforts to get rid of debt may be of no avail due to inadequate wages and high interest rates on credit cards, for example. These individuals may qualify for a Chapter 13 bankruptcy filing, which enables consumers to finally say goodbye to stressful debt.

Chapter 13 bankruptcy offers protection from creditors and allows people to address debts that are challenging to manage. Under this type of bankruptcy filing, an automatic stay stops collectors from persisting in their collection activities. Then, the consumer agrees to make regular payments based on a certain plan that focuses on how his or her debts will be handled.

The payments are made to an established trust fund that a bankruptcy trustee is responsible for managing. Afterward, the trustee distributes these payments based on the consumer’s plan. While some creditors are fully paid, others are only partially paid. The consumer might be granted relief from liability for a portion of his or her debt.

It’s worth noting that creditors do have the chance to voice their objections to a consumer’s proposed payment plan, and these objections have to be resolved in order for the court to confirm this plan. A successfully handled Chapter 13 bankruptcy plan is typically completed in about three to five years. Chapter 13 offers the advantage of allowing homeowners to protect their property while they are going through bankruptcy. Bankruptcy protection truly can help a person to obtain the debt relief he or she desperately needs in Pennsylvania.

Source:, "Should you file bankruptcy? Part 4", William Hendrian, July 15, 2014

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