Chater 13

A Chapter 13 bankruptcy lets you keep property that is put up for loans (“secured debts”) and lets you pay back that debt over an extended period of time. You typically pay back up to ten percent (10%) of other debts that are not secured by property (“unsecured debts”), like credit cards, hospital bills and payday loans. Your lawyer writes up a payment plan based on your monthly income and the secured debt that you owe, and the plan is approved by the bankruptcy court. Typically, these plans last approximately sixty months.