Chapter 13 is the kind of bankruptcy where you make a payment to a trustee. It is sometimes called wage earner bankruptcy.  This type of bankruptcy is designed to allow you to keep the collateral that your creditors may have for their loans, such as cars, houses, and other secured debts. A repayment plan is filed with the Court that sets forth what you will pay to your creditors. While it is difficult to easily describe Chapter 13 bankruptcy, it is a repayment plan for all of your debts, and it reduces all your debts down to one payment made to the Chapter 13 Trustee. 

This repayment plan takes into account your income and debts, and seeks to lower your overall payments down into one single payment that you can afford to make based upon your income. A Chapter 13 repayment plan can last as little as 3 years, but no longer than 5 years.  

To determine if you can file a Chapter 13 bankruptcy, call and schedule a free consultation.