Chapter 13 bankruptcy
This chapter is well known as the reorganization of the United States Bankruptcy Code. It helps in governing different status by providing individuals the opportunity to process a plan of reorganization. Financial affairs in this chapter are well understood and protected through the bankruptcy court.
The purpose of this chapter enables individuals with regular source of income to propose a plan for various classes of creditors. The proposal should be accompanied with the set requirement under chapter 13 of bankruptcy. The court has power to approve the plan as long the statutory plans are observed. Usually chapter looks as the debt consolidation since it allows the individuals to achieve much more than simply what was expected unsecure consolidation such as credit cards and personal loans. Mortgage application under chapter 13 has been allowed by the courts to be used as the platform of modification.
Chapter 13 of bankruptcy has the ability to stop the foreclosure although a foreclosure will be reinstated upon the completion of the bankruptcy. Some properties are secured under this chapter when creditors charge huge amount of interest resulting to the clam downward of the debt by preventing collection activities against non –filling co-creditors during the case.