Chapter 13
Chapter 13 is a debt consolidation or reorganization plan. The debtor must have a regular source of income to make payments to the trustee each month. The “repayment” plan is determined based on the amount of income and the amount and type of debt. There are 3 and 5 year repayment plans available, also determined by each individual’s specific finances. This plan is preferable for some individuals since it will allow them to save their primary residence and vehicle in most circumstances. Upon the completion of the Chapter 13 plan, the debtor will be granted a full discharge of the remaining debts set out in the plan.