Chapter 13 (U.S. Bankruptcy Code)

Chapter 13 of the U.S. Bankruptcy Code allows individuals with a steady income to reorganize their debts and create a repayment plan. Unlike Chapter 7, which can eliminate debts, Chapter 13 enables debtors to keep their property while making manageable monthly payments over three to five years. This option is often chosen by those facing foreclosure or wage garnishments, as it provides a structured way to catch up on missed payments and pay off debts based on their ability to repay, under court supervision, while also halting creditor actions during the process.