Chapter 13 Bankruptcy
Chapter 13 is one method under the Bankruptcy Code to get protection from your creditors, providing that you pay them back as much as you can. It allows you to keep most or all of your property during the time you are paying creditors back (usually three to five years). It also lets you modify some contract payments, interest rates and lengths of obligation, if the automatic stay is in effect. Creditors can take action against you only after you have had a court hearing and the judge has allowed it. Chapter 13 has gained widespread acceptance across the country as an attractive alternative to a “straight bankruptcy” (under Chapter 7 of the Bankruptcy Code).