Chapter 13 Bankruptcy

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Chapter 13 is a type of bankruptcy through which your debts are "restructured", meaning certain debts are considered more important than others and repaid through a Chapter 13 Repayment Plan while others are discharged in part or in full, depending on your available disposable income.

This type of bankruptcy is not as common as Chapter 7, and is quite a bit more complicated, but it does have it's advantages. One of the key advantages of Chapter 13 is that it protects people with a lot of valuable property and assets from creditors. It can also help homeowners who have become "underwater" lower their mortgage payments (in some cases) and stave off a foreclosure permanently.

The downside to Chapter 13 is that it involves a monthly payment plan that can last three or five years, making it a much longer process compared to the 60-90 days Chapter 7 process.

See the information below to learn more about Chapter 13 Bankruptcy.