Filing for Chapter 13 bankruptcy allows you to reorganize most of your personal finances by setting up a monthly payment to your creditors that pays back a portion of the amount you owe. The amount required to be paid on these bills is determined by several factors, including the amount and type of debts you have, the amount you can afford to pay each month, and the value of the property you owe.
Chapter 13 Bankruptcy & Payment Plans
In order to file for Chapter 13 bankruptcy, you must have a regular source of income. Chapter 13 will not result in the loss of property unless you choose to return property, and it will help you handle payments to difficult creditors like the IRS and student loans.
Payment plans can last between three and five years. For most of your debts, the payment plans will completely eliminate the entire debt — even if the debt is not paid in full by the end of the payment plan. Individuals with a steady source of income and the ability to make consistent payments on their debt may find chapter 13 bankruptcy as an appealing option.