What Is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy can also be known as reorganization bankruptcy. With this bankruptcy option, you are given a court-approved repayment plan that will last for three or five years. If you complete the repayment plan and are current with debts, then you can keep your property.
Being able to keep your home is one of the benefits of choosing Chapter 13 bankruptcy. In order to be eligible for this bankruptcy, an individual can't have more than $394,725 in unsecured debts, which includes personal loans or credit card bills. An individual also can’t have more than $1,184,200 in secured debts. This is only for individuals and business can’t file, even if debts are personal.
Failure to make the payments that have been agreed upon will bring you back to court, and this can include selling property to pay for debts. This bankruptcy will be listed on a credit report for seven years. It can be hard to get credit for additional time.