What is a Chapter 13 Bankruptcy?
A Chapter 13 bankruptcy proceeding lets you rearrange your financial affairs, repay a portion of your debts and put yourself back on your financial feet. The typical reasons for filing a Chapter 13 bankruptcy include saving a house in which you are in arrears, payment of back taxes, alimony or child support. You repay your debts through a Chapter 13 plan. Under a typical plan, you make monthly payments to the bankruptcy trustee, who is appointed by the bankruptcy court, for three to five years. The bankruptcy trustee distributes the money to your creditors