Chapter 13

Chapter 13 is a reorganizational form of bankruptcy that can provide many attractive options for consumers who are seeking to protect valuable assets, seeking to cure a foreclosure, or who have the ability to repay some or all of their creditors. Chapter 13 offers flexibility to consumers and allows them more options than are available in a Chapter 7 bankruptcy. The hallmark characteristic of a Chapter 13 bankruptcy is the “plan” which is proposed by the consumer. The plan involves making a monthly payment for a specified amount to the bankruptcy trustee each month during a plan period, lasting up to 60 months. The trustee then pays the creditors’ claims, either in part or in full, depending upon the consumer’s ability to pay.