Chapter 13: Debt Adjustment Bankruptcy

Chapter 13 bankruptcy, also known as debt adjustment bankruptcy, is a legal process that allows individuals with a regular income to reorganize their debts. It enables them to create a repayment plan to pay off all or part of their debts over three to five years, while keeping their assets. This option is beneficial for those who want to avoid foreclosure or repossession. Under Chapter 13, debtors make monthly payments to a trustee, who then distributes the money to creditors, helping them regain control of their finances and rebuild their credit.