OF TERMS - PAGE 3
Chapter 13 — Chapter 13 has
long been referred to as the wage earners’ plan. It allows a
debtor with disposable income to propose a plan in order to pay
the creditors in full or in part. The plan is three or five years
and the percentage of pay back could range from 0% to 100%. A
Chapter 13 cannot be filed if a debtor has unsecured debts of more
than $269,250 or secured debts of more than $807,750 (these limits
will adjust again on April 1, 2001; see Section 104(b) Title II,
Co-debtor stay — There is
an automatic stay which protects persons who did not file
bankruptcy but are liable on the same debt along with the person
or entity who did file. Joint cardholders or co-signers of the
debt would be protected by the automatic stay. This co-debtor
protection is available primarily in Chapter 13 cases only.
Collateral — Property
pledged for the payment of a loan or line of credit.
Community property — Only
applicable in community property states. It consists of all
property acquired by either spouse during the term of the
marriage. For example, during marriage the wages of either spouse
would be considered community property.