Chapter 13

Known as a reorganization, a Chapter 13 bankruptcy is a form of debt restructuring that allows the debtor to repay creditors according to a court approved 3 or 5 year plan.

Under certain circumstances, a Chapter 13 may be appropriate where a debtor may be prevented from filing a Chapter 7.  This may occur where a debtor is behind on his mortgage and wishes to keep his home, or a debtor’s income and expenses exceed the allowable levels for filing a Chapter 7.