Bankruptcy FAQ – What is a Chapter 13 Bankruptcy?
Chapter 13 is a section of the United States Bankruptcy Code designed primarily for the hard-working individuals who desire to repay their debt. Chapter 13 clients include individuals, residential homeowners, debtors with certain nondischargeable debts, and individuals with substantial personal assets. A Chapter 13 bankruptcy allows a person or married couple to pay off all, or a portion, of their debts under the supervision and the protection of the U.S. Bankruptcy Court in exchange for a monthly payment. Chapter 13 is designed for working people, with steady incomes, who are overwhelmed with debt, including overdue credit obligations, repossessions, judgments, lawsuits, garnishments and other financial concerns. Along with a petition and schedules, clients submit to the bankruptcy court a proposed plan to fully or partially repay their creditors over 3-5 years. Oftentimes, a Chapter 13 is utilized to save a client’s home or delay a foreclosure sale so the client can sell his or her h
