Exploring Chapter 13 Bankruptcy: Keeping Your Assets
Good morning, everybody. Edward Kelly, your bankruptcy attorney here, and now we’re going to deep dive into chapter 13 with the same couple of questions I asked about chapter 7 in the last two videos, which have slightly different answers concerning chapter 13.
If you recall, in chapter 7, the two big questions are, as they are for chapter 13, Do I get to keep my stuff? and Will these debts be discharged? So, slightly different answer, similar to chapter 13. So today, we’ll talk about, Do I get to keep my stuff? The same exemptions apply in both cases.
What You Need to Know About Chapter 13 Exemptions
So your home is okay. Now, if you’re behind on your mortgage, you’re going to have to catch that up in your Chapter 13 plan. As with any secured debt, whether it’s a house, a boat, a plane, or a car if you want to keep the stuff, you’re going to have to pay at least the value of that property.
Now, you may owe way more than the value, and you may be able to split that off and get rid of it. We’re going to talk about that in another video. So, we’ll save that for another time, but you’re certainly going to have to pay something to keep the stuff.
Understanding Payment Plans in Chapter 13 Bankruptcy
So, as far as a car and a house, you know, depending on when they pay off, you may recall we said a chapter 13 plan is anywhere from three to five years. If those loans pay off during that lifetime of your plan, three to five years, they need to be paid through your plan.
As we said before, what a 13 is, is I’m helping you propose a detailed plan to pay all of your creditors. If a loan term finishes within the time of your chapter 13 plan, it needs to be paid through that plan.
Take the First Step Towards Financial Freedom
If you have more questions about Chapter 13 bankruptcy in Oklahoma City or if you’re ready to take the next step towards financial freedom, contact a bankruptcy attorney in OKC, at 405-563-7888 for a low-cost initial strategy session. Let’s work together to find the best solution for your financial situation.