Chapter 13 (Wage Earner's Plan)

Chapter 13, known as the Wage Earner’s Plan, is a bankruptcy option allowing individuals with regular income to create a court-approved repayment plan. It helps them pay off debts over three to five years while keeping their assets, such as a home or car. Under this plan, debtors propose a manageable schedule to repay creditors, often reducing the total owed. Once confirmed by the court, the debtor makes consistent payments, and at the end of the plan, remaining eligible debts may be discharged. This process provides a structured path to regain financial stability while avoiding liquidation of assets.