Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also called the wage earner's bankruptcy or reorganization bankruptcy, is one of the two most popular types of consumer bankruptcies (the other one is  Chapter 7 bankruptcy). In Chapter 13 bankruptcy, you keep your property and repay some or all of your debts over a three or five year period. What debts you repay, how much you pay each month during the repayment period, and what happens to your debts at the end of your case is all laid out in your Chapter 13 repayment plan.  

Chapter 13 bankruptcy is often a good choice for people who want to keep property that they would otherwise lose in a Chapter 7 bankruptcy. And because you can make up arrearages in your repayment plan, Chapter 13 is often the only bankruptcy choice that will allow you to keep your home if you are facing foreclosure.  

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