While filing for bankruptcy, there are several codes, which
an individual can file under. One such chapter is 13, which
allows the debtor to keep property and pay the debt off
over time.

The debt is usually paid over a three to five year period.
This chapter is usually chosen by those who have a regular
income and who do not wish to deal with the new laws of
chapter 7 bankruptcy codes.

Also known as the wage earners plan, chapter 13
bankruptcies enable debtors to pay off part of the debt
they have incurred.

While it is not as good as being able to work something out
with your creditors and arrange payments individually or
through a debt consolidator, it does show some financial
responsibility and the debtor?s willingness to make up for
their mistakes.

Chapter 13 bankruptcies act as sort of a consolidation loan
in itself. Because the debtor is making payments on the
owed monies, it does not have such a bad impact on the
credit reports. But the individual does not have direct
contact with the creditors and payments are distributed
amongst them.

To be eligible for the Chapter 13 bankruptcy an individual,
even if self-employed must have an unsecured debt of under
$307,675 and secured debts must be under $922,975.

No debtor may file for chapter 13, or any bankruptcy
chapter during the preceding 180 days of a previous
bankruptcy petition was dismisses.

There are fees that must be paid also when filing for
bankruptcy, even the chapter 13 code. The courts charge a
$235 case filing fee and a $39 miscellaneous administrative
fee. These fees must be paid when filing unless with the
courts permission, it can be paid in installments.