Chapter 13 Plan

A Chapter 13 Plan is a legal agreement in bankruptcy that allows an individual to repay some or all of their debts over time, typically 3 to 5 years. It outlines how the debtor will make payments to a court-approved plan, which then distributes the money to creditors. The aim is to help the debtor keep their property, like their home or car, while ultimately resolving their debts in a manageable way. Once the plan is completed successfully, remaining eligible debts may be discharged, meaning they are legally freed from further obligation.