What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a debt repayment plan that generally runs over a 3-5 year period. The debtor makes a specified payment to the Chapter 13 trustee, who then distributes the money to creditors. The amount creditors receive can vary between 1% and 100%, depending on the Debtor’s ability to repay. The debtor receives a discharge of all dischargeable debts upon completion of the Plan.