Those who earn a decent income but are overwhelmed with debt may be able to get financial relief through a Chapter 13 bankruptcy. This involves setting up a controlled or structured payment plan to pay down your debt while generally being able to hold on to your car and home.
Under Chapter 13, the individual seeking bankruptcy proposes a repayment plan of 3 to 5 years to the creditor. The repayment plan offers you the chance to pay off part or all of your debts over an extended period using your future income. However, only individuals with a “regular source of income” are able to file for Chapter 13.