Bankruptcy - Chapter 13 Overview

In Chapter 13 bankruptcy, individual debtors with a regular income can gradually pay off their debts over several years. The advantage of Chapter 13: you will be able to keep your money and property, especially your home, which can't be foreclosed during this process.

However, you can't file Chapter 13 if your debts are above certain limits, or if you've filed for bankruptcy in the recent past. You will also have to undergo credit counseling prior to filing.

To start the Chapter 13 process, you will need to file a petition, describing your finances, with your nearest branch of bankruptcy court. It's important to know that Chapter 13 bankruptcy may take years to resolve as you gradually repay your debts.