Your Property in Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, you keep your property and repay your debts (some in full, some in part) over a three to five year period. Chapter 13 is often a good option for people who have lots of equity in property they want to keep, like a home or expensive jewelry.

Exemptions still play a role in Chapter 13 bankruptcy, since the minimum amount you must repay most unsecured creditors depends on how much of your property is exempt. If most of your property is exempt, your minimum repayment amnount to unsecured creditors is less. If much of your property is nonexempt, your minimum payment goes up.

Chapter 13 also has some nice features that apply to certain types of secured property. For example, you may be able to reduce the amount of a secured loan to the value of the property (this is called a cramdown). And in some cases, you can remove second or third mortgages from your home. 

Below you'll find overview articles on how property is treated in Chapter 13 bankruptcy, articles on what happens to specific types of property, and links to areas devoted to your car and home in Chapter 13.

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