The Law Offices of MAGYAR & RAUCH, PLLC
Chapter 13: Repayment of All or Part of
the Debts of an Individual with Regular
1. Chapter 13 is designed for individuals with regular
income who would like to pay all or part of their debts in
installments over a period of time. You are only eligible for
chapter 13 if your debts do not exceed certain dollar
amounts set forth in the Bankruptcy Code.
2. Under chapter 13, you must file with the court a plan to
repay your creditors all or part of the money that you owe
them, using your future earnings. The period allowed by
the court to repay your debts may be three years or five
years, depending upon your income and other factors.
The court must approve your plan before it can take effect.
3. After completing the payments under your plan, your
debts are generally discharged except for domestic
support obligations; most student loans; certain taxes;
most criminal fines and restitution obligations; certain
debts which are not properly listed in your bankruptcy
papers; certain debts for acts that caused death or
personal injury; and certain long term secured obligations.