Chapter 13 Bankruptcy
Chapter 13 Bankruptcy is a legal option for individuals who need to reorganize their debts while keeping their property. It allows you to propose a repayment plan to pay back all or part of your debts over three to five years. This plan is submitted to the bankruptcy court, which must approve it. During this time, creditors cannot take collection actions against you. Chapter 13 is ideal for those with a steady income who want to avoid foreclosure or repossession while managing their financial obligations in a structured way.
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Chapter 13 bankruptcy is a legal process that allows individuals with a regular income to reorganize their debts. Instead of liquidating assets like in Chapter 7 bankruptcy, Chapter 13 enables debtors to create a repayment plan to pay off debts over three to five years. This protects them from creditors while they make manageable monthly payments. Upon completion of the plan, remaining unsecured debts may be discharged, providing a fresh financial start. It’s often ideal for those who want to keep their property and catch up on missed payments, such as mortgages or car loans.