Chapter 13 Bankruptcy

A Chapter 13 bankruptcy allows you to keep your property but in exchange you must make payments to your creditors in a Chapter 13 Plan which lasts from three to five years.  Secured creditors, such as mortgage or auto lenders, can be included in the plan or paid outside of the plan as per your loan agreement. The amount that you must pay is based on a review of your income and expenses and a determination of how much disposable income is available to pay each month.  If the court approves your plan and you make all of the payments required, you will receive a discharge of all debts included.  There is a debt limit for filing Chapter 13, so debtors cannot have unsecured debts exceeding $383,175 or secured debts exceeding $1,149,525.