What Is Chapter 13 Bankruptcy

Written by True Tamplin, BSc, CEPF®

Reviewed by Editorial Team

Updated on March 08, 2023

How Does Chapter 13 Bankruptcy Work?

Chapter 13 bankruptcy works by allowing debtors to make a debt restructuring plan to pay back their creditors.

This option is usually taken by those with a steady enough income to afford to undertake a repayment plan.

Chapter 13 bankruptcy works by giving debtors who can feasibly afford to repay their creditors an opportunity to renegotiate the terms of their debt before having their assets seized.

How to File Bankruptcy Chapter 13

To file Chapter 13 bankruptcy, you will need to petition the bankruptcy court serving the area in which you live.

The best first step is to contact an accredited bankruptcy lawyer to figure out your case.

What Is Chapter 13 Bankruptcy FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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