What Is a Chapter 13 Bankruptcy?
Chapter 13, Title 11 of the United States Bankruptcy Code concerns reorganization bankruptcies. When an individual files for Chapter 13, he or she must create a repayment plan which covers the repayment of debts to creditors. The repayment plan documents exactly who will get paid money and when, and generally lasts for between three and five years.
Chapter 13 may be particularly beneficial for individuals who have enough disposable income to support themselves and their family while repaying their creditors.