Bankruptcy Chapter 13

Chapter 13 bankruptcy, sometimes known as the "wage earner's plan," provides individuals facing financial challenges with a unique avenue to address their debt problems. This chapter of the bankruptcy code allows those with a consistent income to create a manageable plan to repay their debts over an extended period, often three to five years. Unlike Chapter 7, which usually involves the liquidation of assets to satisfy creditors, Chapter 13 enables individuals to retain their valuable assets, such as homes and cars, while working towards becoming debt-free. This flexible and structured approach to debt relief can offer much-needed peace of mind and financial stability to those in difficult financial situations.