Filing for a Chapter 13 Bankruptcy
Interviewer: Well, that’s amazing. What about for a Chapter 13? There you are not just discharging debts so when you are meeting with the creditors are you setting up a budget and a payment schedule?
Adam: Yes, that’s part of it. You have to see how much debt the debtor has, also what kind of equity they have. What the potential amount they can afford to pay on each. Who has a greater security interest in the asset? If you are examining an asset such as a home, obviously the mortgage has preeminent rights. Can the debtor stay in the home? How much can we reduce his or her monthly payments versus how much can he pay on credit cards or medical bills?
By Adam Hunt