Chapter 13 Bankruptcy
Chapter 13
The second chapter consumers can file bankruptcy under is Chapter 13, which refers to the reorganization of debts as creditors will receive some sort of repayment on the debt owed to them. Accordingly, a payment plan is filed with the court and must be confirmed by the Judge. Chapter 13 cases usually last 60 months, but can end in as little as 36 months in certain circumstances. Further, there is a Chapter 13 Trustee, who oversees the case and takes a percentage of the monthly plan payment as a fee for services associated with paying creditors. Chapter 13 is for debtors who either do not qualify for Chapter 7 or have a secured debt they are trying to get current on.