Chapter 13 Bankruptcy

Chapter 13 bankruptcy is known as a reorganization bankruptcy. Instead of selling off all relevant assets to pay creditors, people who file for Chapter 13 bankruptcy set up repayment plans that use their income to gradually eliminate their debts. It's typically used by debtors whose income exceeds the limits of Chapter 7. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. However, Chapter 13 bankruptcy has its own set of rules and eligibility requirements. This section offers a guide to those rules and requirements, as well as the process involved. This section contains in-depth information about Chapter 13 bankruptcy, including the pros and cons of Chapter 13, how it differs from Chapter 7, how repayment plans work, the debts that remain after a Chapter 13 discharge, and more.