Chapter 13 is entitled "Adjustment of Debts of an Individual With Regular Income." The desired result of a plan in Chapter 13 is an adjustment, or a restructuring, of the debts of an individual or couple. Typically, the plan is used to restructure debts that a Debtor could not afford, so that the Chapter 13 plan actually can have the effect of reducing a car payment that is high and/or making up house payments that are behind.

If the debtor cannot make a chapter 13 payment on time according to the terms of the confirmed plan, the debtor should contact the trustee by phone and by letter advising the trustee of the problem and whether it is temporary or permanent. If it is a temporary problem and the payments can be made up, the debtor should advise the trustee of the time and manner in which the debtor will make up the payments.

Chapter 13 Bankruptcy is also known as a reorganization bankruptcy. Chapter13 bankruptcy is filed by individuals who want to pay off their debts over a period of three to five years. This type of bankruptcy appeals to individuals who have non-exempt property that they want to keep. It is also only an option for individuals who have predictable income and whose income is sufficient to pay their reasonable expenses with some amount left over to pay off their debts.

A Chapter 13 plan cannot exceed 60 months. The Debtor has to pay for at least 36 months, unless all creditors are paid in full in less time.

Yes. Unfortunately, with few exceptions, regular payments to creditors holding home mortgages cannot be lowered. But past due payments on mortgages can, however, be made up over a long period of time through payments into the Chapter 13 plan.

Your Chapter 13 payments should be made payable to Chapter 13 Trustee and you should include your name and case number on your payment and mail it to:

Title 11, which is the United State Bankruptcy Code, is broken down into Chapters. "Chapter 13" of Title 11 deals with adjustments of debts of an individual with regular income, i.e., consumer reorganization.

A person may usually file file for Chapter 13 relief if he is an individual, has a regular income, has fixed unsecured debts of less than an ammount defined in the Bankruptcy code, and has fixed secured debts of less than an ammount defined in the Bankruptcy code.

One advantage is the ability to stop a foreclosure on your house, and to have a mortgage that has been accelerated declared reinstated upon bankruptcy plan completion.

Since Chapter 13 involves paying back at least some of your debts over time, it usually takes at least three years to complete a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy is often called a personal reorganization. The focus of a Chapter 13 bankruptcy is the reorganization plan, which you and your attorney will create. In the reorganization plan you lay out your budget and show how much extra money you have left over each month to pay off your debts. This money is called disposable income. You then promise to pay this amount each month for a period of time (usually 3 to 5 years).

A chapter 13 bankruptcy provides you up to three years to pay off your debts. The payments are made through a court appointed trustee. Chapter 13 bankruptcy is generally not suitable for most people since it does not give you a clean breakaway from your debts and since may people who start with a chapter 13 end up filing a chapter 7 anyway. Chapter 13 tends to work for people who are facing foreclosure on the house.

The amount of your Chapter 13 payments are based upon your income, your monthly living expenses, and the amount of your total debts. This is known as the means test which is a pre-determined standard of living based on Internal Revenue Service standards. The Court will allow you to keep and spend so much of your income as determined by the means test.

You must reside or have a domicile, a place of business, or property in the United States; you must not have had a bankruptcy filing dismissed for cause within the last 180 days; you must have a regular income; and your total debts cannot exceed $1,446,550 (secured debts cannot exceed $1,010,650 and unsecured debt cannot exceed $336,900).