Chapter 13 bankruptcy definition

Chapter 13 bankruptcy, also called reorganization bankruptcy (or wage earner’s plan) is a method employed by consumes who have debts and are not able to pay them back.

In chapter 13 bankruptcy you reorganize your payments and create a chapter 13 bankruptcy payment plan. Then you start paying your debts under
the direct supervision of the bankruptcy court and trustee and according to this plan.

The chapter 13 bankruptcy timeline is between three to five years and during this period you have to make every payment on time. If you miss one of the payments your case may be dismissed.

Chapter 13 bankruptcy is the solution for the ones that want to fill for bankruptcy but in the same time keep their properties like home or car. If in Chapter 7 bankruptcy you have to give all your non exempt properties to the bankruptcy trustee in Chapter 13 you are allowed to keep all your assets but in the same time you need to make regular payments to your credits.

So the Chapter 13 bankruptcy definition is:

A type of bankruptcy used by individuals who want to reorganize their debts and pay back a portion of the money they owe to creditors.