Z Cherry Blog

What Is Chapter 13 About ?

August 28th, 2008

Bankruptcy cases are always filed in Federal court. Because the Federal codes did not address all questions related to bankruptcy, the States also have decision-making authority. Each State has it’s own “slant” as it were.
Chapter 13 Bankruptcy is used most often by individuals who have faced a life-altering experience that has landed them in debt, creating a large imbalance between their income and output. An example of this would be catastrophic medical expenses incurred due to an accident or illness. The debtor has a job and regular income and is able to make regular payments but not in the amount demanded. One of the stipulations regarding Chapter 13 is that the individual be able to settle their indebtedness over a 3-5 year period of time and remain current as a function of this extended time period.
Chapter 13 Bankruptcy Nevada, has it’s own stipulations or “exemptions” for individuals filing.
These include: your home, vehicle, retirement account(s), clothing, specialized equipment etc…
These exemptions are only recognized up to a certain limit. For example, the value of your homestead is exempt up to $550,000 only.
It is always a good idea to speak with a bankruptcy attorney in your community. Many laws are difficult to interpret for the average person. Get Professional Advice !

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