| Chapter 13 Bankruptcy is typically referred to as a Debt Adjustment Bankruptcy provision within the U.S. Bankruptcy Code. In most cases, people file for Chapter 13 bankruptcy when they need to save a home from foreclosure, save a car from repossession, don’t qualify for a Chapter 7 bankruptcy because their incomes are too high, or wish to keep valuable assets that they would otherwise lose in a Chapter 7 bankruptcy. In a Chapter 13 bankruptcy, the debtor must enter into a payment plan for a three to five year period so that the delinquent payments and other unsecured debts can be paid off in a manner that is affordable to the debtor. |
