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Q.What is a Chapter 13 bankruptcy?
A.In a chapter 13 bankruptcy, a debtor who has a steady income may submit a proposed three to five year plan for the re-payment of all, or most of, his or her outstanding debt to the bankruptcy court. If the bankruptcy court approves the plan, the creditors must accept it. For the plan to be approved, the plan must call for payments that meet or exceed the amount that would have been paid to creditors in a Chapter 7 case. If the debtor makes all of the required payments pursuant to the court-approved plan, the debtor will be allowed to keep his or her home, car, and other property.
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