In a nut shell a Chapter 13 Bankruptcy is a reorganization. Basically, you put together a plan that will let you take care of your debt over the next three to five years, and please do not misunderstand me when I say take care of the debt, I don’t necessarily mean pay it. People that need a Chapter 13 are typically facing a foreclosure, they’re facing a re-possession, they may have a car that they’re significantly under water in and some of them we can still do what’s called a cram down and basically pay the value. In all of the vehicles we can adjust the interest rates, we can adjust of course what we call priority claims or stretch them out and give the debtors time to pay those. The bulk of the debt, the unsecured non-priority debt are things such as hospitals and doctors and credit cards, and repossession efficiencies, payday loans, stuff like that.

Those types of creditors there’s nothing in the bankruptcy code that says they have to receive a certain percentage of their debt, the amount that they receive typically not based on the amount of debt that they’re owed. What they receive is based on other factors that are going on in the case, which could be excess equity in property, it could be excess income, whether it be under what we call a means test or the excel income expense budget. It could be based on odd transfers or transactions – things like that affect those creditors, but typically the unsecured non-priority debit in vast majority of the cases don’t get any money at all or they get very little. And that’s fine as long as the client completes the case, they get a discharge and whatever’s not paid is not paid and goes away.