One of the biggest questions that come up when an individual is thinking about filing a Chapter 13 Bankruptcy is if all the creditors have to comply with the Bankruptcy ruling. For debts that are eligible to be handled under this particular bankruptcy the answer is YES.
Creditors and Debt
Once this financial relief action has been started and the paper work involved has been submitted along with the fee, an automatic stay kicks in.This means that the debtors named in the bankruptcy can take no action against you or attempt any further collections. There are some debts that will be ongoing which are pension loans or tax debt as well as spousal and child support.
Another common question is what happens to the credit card debt? One of the conditions of a Chapter 13 bankruptcy is that all creditors who have a security on your debt and priority debts will have to fully repaid. Unsecured credits will receive a portion of repayment. In most cases credit card debt is not secured debt.
Usually there are several types of debt that are being dealt with. It is important than anyone going through the Chapter 13 Bankruptcy use a Houston bankruptcy attorney that has experience with this particular type of bankruptcy. This way they have support and direction throughout the entire proceedings.