Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a type of bankruptcy designed for individuals with a regular income who have enough disposable income to repay some or all of their debts. The debts are repaid typically in three to five years. Unlike Chapter 7 bankruptcy, which liquidates assets to pay off debts, Chapter 13 bankruptcy allows the debtor to keep their property and reorganize their debts into a repayment plan.

To qualify for Chapter 13 bankruptcy, the debtor must have a regular income and owe less than certain amounts in secured and unsecured debts. The debtor must also undergo credit counseling before filing and completing a trustee-approved debt repayment plan. Once the repayment plan is completed, any remaining eligible debts are discharged.

Chapter 13 bankruptcy can be a good option for individuals who are struggling with debt but want to keep their property and have a steady income to make payments. However, it is important to consult with a bankruptcy attorney before filing to determine if it is the best option for your family and specific financial situation.