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Chapter 13 bankruptcy is available only to individuals. In a chapter 13, the debtor makes monthly payments to a bankruptcy trustee. The trustee disburses these payments according to a plan that is confirmed by the court. Typically, the plan instructs the trustee to use the funds to pay off car loans, or back due income taxes, domestic support obligations or mortgage payments. The funds can also be used to pay off some or all of the debtor's credit card debt.

Is Chapter 13 Right For You

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