Chapter 13 bankruptcy, also known as a wage earner’s plan, is a type of bankruptcy available to individuals who have a regular income and wish to repay their debts over a period of three to five years.

Under Chapter 13 bankruptcy, a debtor creates a repayment plan submitted to the bankruptcy court for approval. The repayment plan must provide for the repayment of all or a portion of the debtor’s debts over the plan period.

The debtor must make monthly payments to a court-appointed trustee, who is responsible for distributing the payments to the debtor’s creditors according to the repayment plan. The debtor is allowed to keep all of their property but must use their income to make the monthly payments to the trustee.

Once the repayment plan is completed, any remaining eligible debts are typically discharged, with some exceptions. Chapter 13 bankruptcy can be a good option for individuals who want to keep their property and have a regular income but are struggling to pay their debts.

It’s important to note that not all debts can be discharged in Chapter 13 bankruptcy, including certain tax debts, domestic support obligations, and debts incurred through fraud or malicious conduct. Additionally, the process of filing for Chapter 13 bankruptcy can be complex, and it’s often recommended to consult with an experienced bankruptcy attorney before proceeding.