CHAPTER 13 

In a Chapter 13 Bankruptcy, you will be required to pay a portion of your unsecured debt through a 3 to 5 year repayment plan. This option is available to debtors with regular income and will generally allow you to keep assets that might otherwise be lost in a Chapter 7 Bankruptcy such as additional vehicles or rental property. The payment plan will be based upon your future income and what you can afford as opposed to what creditors demand (with many creditors ultimately receiving less than the actual amount of the debt).

Depending upon your circumstances, Chapter 13 can also provide you with options to modify your debts that aren't available under Chapter 7. Even if you are behind on a secured debt, the amount that you are behind can be included into the Chapter 13 plan and be paid over the course of the 3 to 5 year bankruptcy, leaving you current at the end of the plan. This is particularly beneficial if you are facing foreclosure of your home. You will be able to keep your residential home and pay back what you are behind over the course of the bankruptcy, provided you continue to make timely regular payments while you are in bankruptcy. Similar to a Chapter 7 bankruptcy, most remaining unsecured debt will be discharged after the completion of the Chapter 13 plan.