Chapter 13 Bankruptcy

In Chapter 13 bankruptcy, you pay off your debts through a repayment plan administered by the bankruptcy trustee. Some of your debts must be paid in full, others you pay at a discount (sometimes a steep discount). You get the protection of the bankruptcy court during your repayment period, which lasts either three or five years. Chapter 13 is often called “reorganization” bankruptcy.

For some high earners that don’t qualify for Chapter 7 relief, Chapter 13 bankruptcy is the only option. And Chapter 13 is often the best bankruptcy option for people who are behind in their mortgage and want to keep their home.

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