Here are some things that San Diego area residents should know about Chapter 13. Although Chapter 13 Bankruptcy is a repayment bankruptcy and requires payments to be made to your creditors, you can still eliminate, or “discharge,” a significant portion of your unsecured debt through a Chapter 13 Bankruptcy. Yes, a Chapter 13 Bankruptcy is the reorganization of an individual’s secured and unsecured debts. But, most debt that is not paid off through the plan is discharged if the plan is completed successfully. The amount of unsecured debt you can eliminate through a Chapter 13 Bankruptcy will be determined by several factors.

Chapter 13 Bankruptcy is a repayment plan, but general unsecured creditors who are not paid in full lose the right to collect the balance of their debt upon the successful completion of a Chapter 13 Bankruptcy. The repayment plan lasts 36 to 60 months, and is enforced through the federal bankruptcy court and administered by a Chapter 13 Trustee. Creditors are paid according to a plan filed by the person claiming Chapter 13 Bankruptcy, and confirmed, or approved by a bankruptcy judge. After the filing of a Chapter 13 Bankruptcy, a creditor will have an opportunity to file a claim that states the amount of debt they are owed with the bankruptcy court. Call one of our San Diego attorneys for a free consultation at Sagaria Law.