What is a Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy – The chapter of the Bankruptcy Code providing for adjustment of debts of an individual with regular income. (Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.)
-USCourts.gov, the Official Site of Judicial Branch of the U.S. Government
Chapter 13 is a type of bankruptcy, also called “Reorganization,” in which a trustee provides for adjustment of debts for an individual with regular income. In this type of bankruptcy, you retain rights to property and pays your debt over time usually in a span of three to five years.