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An important advantage of Chapter thirteen is that a program is usually structured to be able to maintain your home and auto. After you file for Chapter 13, creditors are not able to foreclose on the house or repossess your car.

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You’ll also be supervised by a court-appointed trustee who will collect your payments and distribute them to creditors.

There are several varieties of bankruptcy, Every single named according to More Help its corresponding part from the Bankruptcy Code.

Another step in analyzing your debts is usually to pick which debts are precedence debts and which debts are non-priority debts. Frequent precedence debts are boy or girl help payments, domestic support obligations, and selected tax debts.

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Make a summary of many of the assets you have and just how much Each and every product is worth. This stage is vital simply because you’ll really need to know very well what you've and simply how much of it it is possible to defend making use of bankruptcy exemptions.