Chapter 13 (Repayment Plan)

Chapter 13, or a repayment plan, allows a debtor to reorganize and pay off their debts over three to five years. Instead of immediately losing assets or facing collection actions, the debtor proposes a plan to the court outlining how they will pay creditors, often using their income or assets. If the court approves, the debtor makes regular payments to a trustee, who then distributes funds to creditors according to the plan. This process helps the debtor keep their property while gradually satisfying their debts within a structured timetable.