Chapter 13 bankruptcy filing is a way for individuals to undergo a financial reorganization supervised by a federal bankruptcy court. The Bankruptcy Code anticipates the goal of Chapter 13 as enabling income-receiving debtors a debtor rehabilitation provided they fulfill a court-approved plan.
To begin a Chapter 13 case you must file a petition, schedules, statement of financial affairs and a proposed plan of reorganization with the Bankruptcy Court. The Court will assign a bankruptcy case number and the local Chapter 13 trustee will oversee your case. You will be required to make monthly payments to the Chapter 13 trustee for a period of 36 to 60 months. Once all payments have been made under the terms of the plan, the Court will issue a discharge.