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Declaring personal bankruptcy is a stressful time for millions of U.S. families. However, a lot of the stress comes from not understanding the entire process. This chapter 13 bankruptcy FAQ will answer some of the more common questions.
Most individuals who file under chapter 13 do so because they don't qualify for chapter 7 due to the Bankruptcy Abuse Prevention and Consumer Protection Act 2005. This is normally because of non-exempt assets or income being above the median level for that state.
All qualifying unsecured debt is cleared over a period of 36 to 60 months. The timeframe will depend largely upon how much money is owed and the amount of disposable income available to make payment. Post-petition creditors (agreements signed-up to after declaring personal bankruptcy) will need to be paid separately and in accordance with the specified T&C's.