A Chapter 13 Bankruptcy is also called
a wage earner’s plan. In a Chapter 13 Bankruptcy, debtors
propose a plan to repay all or part of their debts over a three
to five year period. A Chapter 13 filing has several advantages
over a straight bankruptcy, including the ability to save a home
from foreclosure by curing back payments through the plan. In
addition, instead of giving up non-exempt property, debtors can
often retain their property if they pay into their plan an amount
equivalent to the value of the property.
In some situations, debtors are required
to file a Chapter 13 Bankruptcy if their disposable income exceeds
that allowed in a Chapter 7 filing.
