Chapter 13 (United States Bankruptcy Code)

Chapter 13 of the United States Bankruptcy Code allows individuals with regular income to reorganize their debts through a repayment plan. Instead of liquidating assets, debtors propose to pay back creditors over three to five years, while keeping their property. This process helps individuals regain financial stability while protecting them from foreclosure or wage garnishment. The court must approve the repayment plan, and after successful completion, remaining eligible debts may be discharged, providing a fresh financial start. It's often used by those who want to retain their home or other assets while managing debt responsibly.