Chapter 13 Bankruptcy | St Cloud Bankruptcy Attorney
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The second type of bankruptcy is Chapter 13, which is often referred to as a wage earner consumer reorganization. In a Chapter 13 case, the debtor chooses to repay all or a portion of his unsecured debt over a five-year period. The advantage of a Chapter 13 plan is that it enables the debtor to handle debts which are not dischargeable under a Chapter 7 case, such as student loans, fraud, damages resulting from driving while intoxicated, etc. Chapter 13 is preferable when the debtor has certain non-exempt property, which would otherwise have to be surrendered in a Chapter 7 case.
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