Chapter 13

Chapter 13

Chapter 13 bankruptcy is essentially a repayment plan that lasts three to five years. The amount you pay depends on your income and expenses. As with a Chapter 7, once a Chapter 13 is filed, all collections stop. In addition,  you are afforded longer-term protection from some creditors, such as the IRS or a mortgage company trying to foreclose. Chapter 13 can bring additional relief by allowing you to catch up on a mortgage, back taxes, child support, pay off a car loan, or even reinstate a suspended driver’s license. Click here for a list of the median incomes, state by state, in the U.S.