A Chapter 13 Bankruptcy, unlike a Chapter 7 Bankruptcy, does not provide a release of debt, but rather a restructuring of the debt in a manner that is considered manageable to repay the dept.
Many times the debt to be paid back may be less that currently owed through negotiation. In a Chapter 13 Bankruptcy, a debtor proposes a repayment plan to the creditors, over a 3 to 5 year period, in a good faith proposal to pay off all or part of the debts from the debtor's future income.
Creditors often will work with debtors in a Chapter 13 Bankruptcy, as Chapter 13 provides the opportunity to recover funds from you, as apposed to a Chapter 7 Bankruptcy where the potential to recover a larger portion of the debt is diminished.
Those who are more likely to file for a Chapter 13 Bankruptcy are individuals who seek to hold on to possessions such as a home, multiple vehicles, or other property or assets.
The longer an individual waits to obtain legal representation may directly affect their ability to achieve a successful outcome. Therefore, if you are considering filing for a chapter 13 bankruptcy, it is important to seek the legal advice and representation of an experienced chapter 13 bankruptcy attorney or lawyer as soon as possible.