What is Chapter 13 Bankruptcy?

Chapter 13 offers excellent advantages for people considering bankruptcy as a tool to manage their debt. One of the most significant advantages is that it allows debtors to prevent foreclosure on their homes. Debtors can also reschedule secured debts and extend them across the life of the payment plan, reducing payments. Often, co-signers are also protected by a provision that protects third parties in Chapter 13 bankruptcy, which could be helpful for your family. If you file for Chapter 13 bankruptcy, you will make payments to a trustee, who will then distribute them to creditors. The trustee will act as a mediator between you and the creditor, making the process as straightforward as possible.