Chapter 13
Wage-earner debt restructuring
Chapter 13 is the section of the U.S.
Bankruptcy Code that enables wage earners to reorganize their debts rather than liquidate assets.
It provides a structured repayment plan while protecting the debtor from creditors: Chapter 13 gave them breathing room to get back on their feet.
The term functions as shorthand for this entire bankruptcy process. (Lowercase chapter 13 refers to the same thing informally.)
- means testEvaluation of financial eligibility
- cramdownJudicial override of creditor dissent
- five-year planHalf-decade strategic roadmap
- repayment planTerms for returning borrowed funds
- bankruptcy codeStatutes governing debt discharge
bankruptcy court · trustee · confirmation hearing · disposable income · debt relief · foreclosure prevention · financial recovery · payment deadlines · debt restructuring · second mortgage · creditor · debtor · financial hardship · wage garnishment · credit counseling · lawyer · secured · interest rates
- debtdebt, creditor, owe, debtor, lender
- bankruptcybankruptcy, bankruptcy court, bankruptcy petition, bankruptcy code, bankruptcy filing
- insolvencyinsolvency, bankruptcy court, liquidation, bankruptcy, creditors
- debt reliefdebt relief, debt forgiveness, debt settlement, debt cancellation, debt negotiation
- loan paymentsmonthly payment, loan payment, minimum payment, loan repayment, payment schedule
- foreclosureforeclosure auction, forced sale, foreclosure prevention, foreclosure notice, foreclosure sale
Chapter 13solvency
Capacity to pay debts
creditworthiness · financial health · financial stability · debt-free · good standing