Chapter 13 Bankruptcy

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What is Chapter 13 Bankruptcy?

Basically, filing Chapter 13 Bankruptcy means that you will pay back at least a portion of your debt using a Court approved payment plan that lasts approximately three to 5 years. The rest of your debt is usually discharged after your case is finalized.

Who files Chapter 13 Bankruptcy?

Generally, chapter 13 BK is preferred by debtors who have a valuable asset, such as a home, that is not completely covered by exemptions and that they wish to keep. This is possible because under Chapter Thirteen BK a debtor proposes a plan to repay creditors over a three to five year period during which the debtor can make up overdue payments on any assets and pay into the plan the equivalent value of any assets not covered by exemptions.

Can anyone file a Chapter 13?

Since the debtors plan will require regular monthly or biweekly payments, Chapter 13 BK is usually only appropriate for an individual debtor who has a regular source of income.