If you want to pay your bills, and can, but just need to get creditors to back off and time to pay them, a Chapter 13 Bankruptcy may be an option for you. The Chapter 13 bankruptcy, also referred to as the "wage earner" plan, is ideal for individuals with a lot of secured debt, and with a source of income. A source of income is required for a Chapter 13 plan because you will continue to make payments on your debt. However, the time frame to repay your debt will be extended significantly. Most Chapter 13 plans last about five years. The extended period of time allows you to make smaller payments each month. The Chapter 13 plan also allows you to keep secured property as long as you remain in the plan. At the end of your Chapter 13 period, most remaining debt will be discharged.
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