What is a Chapter 13 bankruptcy?
March 11, 2012
A Chapter 13 bankruptcy is a reorganization. Only individuals (not corporations) can file a Chapter 13 bankruptcy. One of the common misconceptions about Chapter 13 is that all of the debt must be repaid. This is not true. In order to have the Chapter 13 plan confirmed (approved by the court), a certain amount of your debt must be repaid. That amount may be determined by your budget, the nature of your debt, or the value of assets you would like to keep. Replayment plans in Chapter 13 last anywhere from 36 to 60 months.