Chapter 13

Chapter of the Code that governs the adjustment of debts of an individual with regular income.

Chapter 13 allows an individual meeting certain qualifications, including a regular income and debt not exceeding certain dollar amounts, to pay that individual’s debts, or a portion of those debts, over time from future income (rather than having all of the debtor’s non-exempt assets liquidated as would occur in a Chapter 7 case). Chapter 13 is not available to a corporate or partnership debtor. If an individual debtor is not eligible to use Chapter 13 because the debtor’s debts exceed the limits applicable to Chapter 13 cases, the debtor may use Chapter 11 to reorganize.

Bankruptcy Code §§ 1301-1330.

Email Term