This term is of generally three to five years and the collection cannot be started or continued by the creditors during the time of court’s protection or automatic stay. Know details of chapter 7 and chapter 13 of bankruptcy. The advantages and eligibility of chapter 13 bankruptcy rules are listed below. It gives people a chance to avoid foreclosure. The procedure of foreclosure can be stopped and the respective mortgage payments can be paid while even paying the present mortgage payments on time. Secured debts like car loans can be rescheduled and can be extended over the life span of chapter 13 plans of repayments. This can sometimes also result in lower payments. There is also a specific provision that helps co signers to construct on to a code. Chapter 13 is similar to bill consolidation loan. You forward the payment to trustee and the payment is distributed amongst the creditors. Hence, there is an advantage to chapter 13 bankruptcy verses chapter 7. You are not allowed to file a bankruptcy if you already have got a past bankruptcy petition dismissed because of failure to follow the court orders or failure to appear or dismissed voluntarily in the past 180 days.
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