What is a Chapter 13 reorganization?
The Quick Answer
A chapter 13 is a type of bankruptcy where you reorganize your finances and repay some, or all, of your debts over time.
The Long Answer
Many times a a chapter 13 bankruptcy is more appropriate than a chapter 7. Generally, you would make one monthly payment to a trustee, who would then repay some, or all of your debt, over a period of time. It's sort of like a consumer counseling or debt repayment plan, but usually with more teeth, since you may still be able to discharge some of your debt. A chapter 13 may be very helpful in you need to repay mortgage arrears over time, or repay or restructure some tax debts you could not discharge in chapter 7, or for several other reasons. Since chapter 13 plans require careful planning it is best to personally meet with a qualified debt relief - bankruptcy attorney to find out more about how a chapter 13 reorganization may help you!