Chapter 13

This is a more complex for of bankruptcy and is less common. Usually people will file Chapter 13 to get current on home mortgage payments that they are behind on, to pay the true value of their car (get out of a bad deal), or to pay back owed taxes without penalties or interest. A Chapter 13 can also stop foreclosure on your house or mobile home and allow you the opportunity to catch up on missed payments. The debtor will only owe a portion of their debt and is required to make timely payments to the Trustee appointed to your case who will then pay your creditors.