Chapter 13 bankruptcy, sometimes called reorganization bankruptcy, is quite different from Chapter 7 bankruptcy (which wipes out most of your debts). In a Chapter 13 bankruptcy, you use your income to pay some or all of what you owe to your creditors over time. Not everyone qualifies for Chapter 13, however -- and some debtors would be better off filing for Chapter 7.
Questions How much of my debt will I have to repay if I file for Chapter 13 bankruptcy? How long will my repayment plan last if I decide to file for bankruptcy under Chapter 13? We're facing foreclosure. If we file for Chapter 13 bankruptcy, can we keep our home? My only income is from retirement benefits.