A Chapter 13 bankruptcy is best for people who cannot pay all their debts right now but think they will be able to pay all or part of them back over 3-5 years. It is also suitable if you have significant assets, such as equity in your home, that you want to preserve. Typically, you commit to a payment schedule in which you will be required to make payments on a portion of your debt over period of time.
During this time, you will be required to live on a budget that’s largely mandated by legal guidelines and supervised by your bankruptcy trustee. Although it may seem restrictive, completing the process will help you regain financial stability. At the end of your Chapter 13 bankruptcy, any remaining debts will be discharged (with some exceptions such as child and spousal support) and you’ll be able to rebuild your credit over time. You’ll have a fresh start in your financial life.