Chapter 13 bankruptcy allows an individual to retain certain types of personal property by paying back their debt over a set period of time.
Chapter 13 bankruptcy is a bankruptcy where one has assets that could be put in danger of being taken from them if they file the Chapter 7. Therefore one file’s a Chapter 13 and their assets don’t come into play. They can retain the assets in Chapter 13 but there is an obligation to pay back all or some of their debt over a period of five years with no interest. This is a very important type of bankruptcy because in many instances one can save their home if their behind on their mortgage and pay their arrears back over a period of five years. There are many bankruptcies where an individual will only pay back ten cents on a dollar on their unsecure debt in a Chapter 13. Again the important things with Chapter 13 like Chapter 7 is to determine what all the assets are, what is secured, what is not secured and go from that point.