Chapter 13 bankruptcy is a form of personal bankruptcy that allows individuals to create a repayment plan to reorganize their debts. As long as an individual has a regular income, they could qualify for chapter 13 bankruptcy plans. If approved, chapter 13 locks the petitioner into a repayment plan for between 3 and 5 years.
It can take a few months to complete the administrative tasks of chapter 13 bankruptcy such as creating and ratifying the repayment plan. Once the administrative process has been completed, the repayment period of chapter 13 bankruptcy begins, which can take several years to conclude.
Filing and administrative fees for filing chapter 13 bankruptcy come out to $310. This does not include costs associated with retaining a bankruptcy attorney but most if not all of the costs associated with chapter 13 bankruptcy can be added into the payment plan calculation.
Once the chapter 13 plan has been approved, individuals are locked into paying installments for the next 3 to 5 years. At the end of the repayment period, all qualified debts will be discharged, freeing the individual from their obligations.
