Chapter 13 bankruptcy is an alternative if you do not qualify for Chapter 7 after taking the means test. Debtors typically turn to Chapter 13 when it is determined that they make enough income to pay back their debt (either partially or fully) under a new payment plan. This form of debt relief is focused on those who are seeking a way out of the financial stress they are currently facing without having to part with certain assets.
Chapter 13 permits debtors to reduce and restructure many debts through a three to five year repayment plan. Chapter 13 also permits individuals to keep non exempt property which would be sold by a trustee in Chapter 7 by paying their creditors the value of that property through a Chapter 13 plan. It also allows people to pay mortgage arrearages, back child support, and taxes.
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