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Article: Is Chapter 13 a viable alternative?
- Article from:
- THE JOURNAL RECORD
- Article date:
- March 5, 1998
- Author:
CopyrightCopyright 1998 The Journal Record. Provided by ProQuest LLC. (Hide copyright information)
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Despite concerted efforts to encourage Chapter 13 bankruptcies
over straight-line Chapter 7, this consumer repayment mechanism does
exact a price.
Recent revisions in the code and recommendations to Congress are
steering individuals to take the restructuring route. But that route
has some rough spots.
Nearly two-thirds of the repayment plans nationwide do not
succeed, according to Samuel Gerdano, the American Bankruptcy
Institute's executive director. A hefty number, considering the
403,025 Chapter 13 petitions filed in 1997.
Gerdano says that a vast majority of Chapter 13 restructuring
plans underestimate the amount of disposable income filers require.
"They're too cut to the bone," Gerdano ...