Unlike Chapter 7 bankruptcies, a Chapter 13 bankruptcy can help you keep your most valuable property, such as your home and car, rather than having to give them up just to repay your creditors. But in turn, you will need to file a payment plan which will indicate how you intend to pay off your current debts and missed payments in the next three to five years. Your plan should be approved by the bankruptcy court before it takes into effect.
Chapter 13 bankruptcies are a good fit for people going through the following circumstances:
- Facing the threat of losing their home due to financial problems
- Behind on their debt obligation but have a stable income that allows them to catch up on payments
- Owns valuable properties and assets that are non-exempt and plans to keep these Consult a bankruptcy lawyer near you prior to filing bankruptcy to make sure that you are applying for the right type.