What Is A Chapter 13 Bankruptcy?
A Chapter 13 plan permits individuals who have a steady source of income to pay part or all of their debts under protection of the Bankruptcy Court. If you file Chapter 13, you file a petition and a plan with the Bankruptcy Court. The Bankruptcy Law requires that the payments you make through the plan to unsecured creditors have at least the value as what the creditors would have received if you had chosen to file a Chapter 7 case. Individuals, as well as persons who are self-employed or a sole proprietorship, may file a Chapter 13.