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ARTICLE · 08 OCTOBER 2024

Using Chapter 13 Bankruptcy To Save Your Home

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Chapter 13 bankruptcy, often referred to as a "wage earner's plan," allows individuals with a regular income to develop a plan to repay all or part of their debts.

United StatesInsolvency/Bankruptcy/Re-Structuring
KI Legal
KI Legal
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What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, often referred to as a "wage earner's plan," allows individuals with a regular income to develop a plan to repay all or part of their debts. Unlike Chapter 7 bankruptcy, which involves liquidating assets to pay off creditors, Chapter 13 focuses on reorganization. This means you can keep your property, including your home while repaying debts over three to five years. The repayment plan is based on your income, expenses, and the types of debt you owe. One of the key features of Chapter 13 is that it allows you to catch up on missed mortgage payments, which can be a lifeline for homeowners facing foreclosure.

How Chapter 13 Bankruptcy Works

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