Chapter 13 is type of bankruptcy known as a Plan of Reorganization. It allows you pay your debt over a period of 3 or 5 years. This type of bankruptcy is typically used when you earn to much to qualify for a Chapter 7, have non-exempt assets, or are facing foreclosure on a home that you want to keep. Chapter 13 bankruptcy provides some flexibility that is also helpful in addressing some tax situations.

Bankruptcy is sometimes called the “Fresh Start Bankruptcy”. It allows you to eliminate your unsecured debts like Credit Cards, Medical Bills, and Payday loans while still keeping your home and personal possessions.