Chapter 13

In a Chapter 13 agreement, the court creates a debt repayment plan that allows the filer to keep their property. In order to file Chapter 13, a person must have a source of income and promise to pay part of their income to creditors. The court allows the filer to keep any assets that have debts against them if they pay them off under as plan as determined by the court. A Chapter 13 filing will remain on a credit report for 10 years. With Chapter 13, there is a better chance of obtaining future loans and credit then with a Chapter 7, however each have a very negative impact on your credit. It is certainly better to pay off your debts in full or to negotiate a mutually beneficial settlement, rather than filing Chapter 13 .

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