What is a chapter 13 bankruptcy?

Background A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years.

How long does a chapter 13 bankruptcy last?

Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years. A chapter 13 bankruptcy is also called a wage earner's plan. It enables individuals with regular income to develop a plan to repay all or part of their debts.

What happens to unsecured debts in Chapter 13 bankruptcy?

In Chapter 13 bankruptcy, you must pay some debts in full through your plan; others you pay in part. For instance, you'll continue to pay monthly payments and interest on secured debts. What happens to unsecured debts in Chapter 13 is different. In many instances, you'll pay far less than you owe. Here are the details.