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This chapter of the Bankruptcy Code provides for adjustment of debts of an individual with regular income. Chapter 13 allows a debtor to keep property and pay debts over time, usually three to five years.
In any type of bankruptcy, a debtor must declare all income, assets and debts. There is no opportunity to hold back a debt. You cannot keep a loan such as a loan from a family member or business partner in an attempt to keep the effects of the bankruptcy away from that creditor.
Debts not discharged in chapter 13 include certain long term obligations (such as a home mortgage), debts for alimony or child support, certain taxes, debts for most government funded or guaranteed educational loans or benefit overpayments, debts arising from death or personal injury caused by driving while intoxicated
Debts you owe on fines or restitution orders contained in the sentence for conviction of any crime (yes, even traffic tickets) may not be discharged in Chapter 13.
What Is a Zero Percent Plan? A Chapter 13 zero percent plan is a repayment plan that doesnt pay any money to nonpriority unsecured debts, like credit card bills, personal loans, and medical balances. Most Chapter 13 filers with high incomes have disposable income that can (and must) be used to pay such creditors.
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Filing a Chapter 13 petition suspends pending foreclosures and payments of any other debts owed. This gives you relief from creditors while the court considers the plan, but it does not eliminate the debt.
Debts you owe on fines or restitution orders contained in the sentence for conviction of any crime (yes, even traffic tickets) may not be discharged in Chapter 13.
When you complete your Chapter 13 repayment plan, youll receive a discharge order that will wipe out the remaining balance of qualifying debt. In fact, a Chapter 13 bankruptcy discharge is even broader than a Chapter 7 discharge because it wipes out certain debts that arent nondischargeable in Chapter 7 bankruptcy.
All debts other than priority and secured obligations are general unsecured debtand the amount youll pay to your unsecured creditors in Chapter 13 bankruptcy will be the greater of your disposable income or the amount your creditors would have received had you filed for Chapter 7 bankruptcy.
A Chapter 13 bankruptcy can remain on your credit report for up to 10 years, and you will lose all your credit cards. Bankruptcy also makes it nearly impossible to get a mortgage if you dont already have one.

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