Chapter 13 Bankruptcy

When filing for Chapter 13, the bankruptcy court will approve a repayment plan that provides for the complete satisfaction of most unsecured and secured debts from future income rather than from the current sale of your important assets. Any payment you make is structured so that you can meet all your living expenses first and then pay surplus income to creditors. A typical repayment plan lasts three to five years, during which you will make regular payments to a court-appointed trustee who then distributes your money to creditors according to the terms of your plan. Once you have completed this repayment plan, most of your remaining debts are discharged