What Is A Chapter 13 Bankruptcy? - BANKRUPTCY

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BANKRUPTCY: What is a chapter 13 bankruptcy?


Under a chapter 13 bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtors' future income.

The amount to be repaid is determined by several factors including the debtors' disposable income. To file under this chapter you must have a "regular source of income" and have some disposable income. Like in a Chapter 7, corporations and partnerships may not file under this chapter.

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