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April 29, 2008

Chapter 13 Payments

Chapter 13 payments are established as part of Chapter 13 bankruptcy filing. The debtor must make regular payments directly to an assigned Trustee who oversees the case. The Trustee will then disperse payments to creditors until accounts are paid in full. In some instances, chapter 13 payments can be made through payroll deductions if approved by the bankruptcy court.

Once bankruptcy has been approved, chapter 13 payments are outlined in the debtor's repayment plan. Regular payments are made to repay creditors, tax liens and if the debtor owns a home, chapter 13 repayment plans can help stop foreclosure.

Real Estate Investing article on "Chapter 13 Payments"