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Posted by / 01-Apr-2017 16:36

As with chapter 7, the bankruptcy automatic stay goes into effect upon the filing of the bankruptcy petition with the court.With the stay in place, a credit card lender can no longer attempt to collect the credit card debt.reasonable food and clothing allowance) and actual expenses (e.g. If disposable income is present, the plan would provide that unsecured creditors receive a particular total sum in disbursements.Depending the quantity of debt and amount of disposable income, the plan might pay pennies on the dollar or might pay creditors in full.

It would be rare situation, especially in a chapter 13, where it would be of benefit to make a credit card payment after filing bankruptcy.Folks familiar with bankruptcy often appreciate the ability of chapter 7 bankruptcy to eliminate credit card debts that have piled up.Chapter 13 bankruptcy can be just as effective at eliminating credit card debt, and carries other advantages that some bankruptcy debtors find beneficial.The debtor proposes a chapter 13 plan, which is subject to a number of requirements and must be confirmed by the court.This plan provides a plan payment (how much the debtor is going to pay each month into chapter 13) and treatment for the creditors (what is going to be paid out to creditors over the life the plan).

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Whether it makes sense to stop days, weeks, or months in advance of the filing depends greatly on individual circumstances and objectives.

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