Chapter 13 Bankruptcy:

   Chapter 13 is a type of reorganization used by individuals to pay all or a portion of their debts over a period of years using their current income.

     In a Chapter 13 case you file a “plan” showing how you will pay off some of your past-due and current debts over three to five years. The most important thing about a Chapter 13 case is that it will allow you to keep valuable property (especially your car and home) which might otherwise be lost if. If you can make the payments which the bankruptcy law requires to be made to your creditors you get to keep most of you existing property. In most cases, these payments will be at least as much as your regular monthly payments on your mortgage or car loan, with some extra payment to get caught up on the amount you have fallen behind.

You should consider filing a Chapter 13 Plan if you:

• Own your home and are in danger of losing it because of money problems;

• Are behind on debt payments, but can catch up if given some time; or

• Have valuable property which is not exempt, but you can not afford to pay creditors from your income over time.

     Your will need to have enough income during your Chapter 13 to pay for your necessities and to keep up with the required payments.