Chapter 13 bankruptcy is known as the “Wage Earner Bankruptcy” is intended for those with higher paying jobs and/or are behind on their mortgage.
By definition, you will pay back at least some of your debt in a Chapter 13 bankruptcy plan.
Some common reasons for filing a Chapter 13 bankruptcy plan are:
• You have a lot of equity in your home
• You make more than the average family in Connecticut
• You are behind on your 1st or 2nd mortgages and want to keep your house, so you need to get back on track
• You are in foreclosure
• You have crushing student loan debt which won’t go away under Chapter 7
• You have so much credit card debt that you can pay, but you need a more manageable payment and a lower interest rate.
All of these scenarios can be resolved through a Chapter 13 bankruptcy filing.
If your chapter 13 bankruptcy plan is approved by the Court, you will make a predictable payment each month for three to five years, and then whatever is still due at that point will be discharged or extinguished.
Read about how to qualify for a Chapter 13 bankruptcy plan here.