Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in
Skip to Main Content

Tax Pro vs. File Your Own? Take Our Quiz!

What Is a Chapter 13 Bankruptcy Filing?

A Chapter 13 filing may be the preferred method for consumers with assets they don't want to lose, if they are willing to retire as many of their debts as possible, but under a less-pressured structure. Some debt balances may be partially discharged, and the filer agrees to a monthly payment to the trustee for distribution to the remaining creditors.

Any bankruptcy is a serious mark against your credit record, but Chapter 13 filings may be perceived as slightly less serious than Chapter 7 filings since you are exhibiting an interest in retiring your debts. (The previous definition applies to Tennessee residents.) For specific bankruptcy information based on your city of residence, visit www.citylegalguide.com for more information.

Chapter 13 Bankruptcy allows you to keep property that you otherwise might lose (such as a mortgaged house or car) if you have a regular income and limited debt. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of three to five years, rather than surrender any property.

If you are facing a bankruptcy situation, don't wait. Contact a trained financial coach in your area.

Ramsey Solutions

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.

Related Articles

A man is learning how to file for bankruptcy by using a bankruptcy checklist.

How to File for Bankruptcy

17 Minute Read | Debt

Filing for bankruptcy isn’t a decision to make lightly. Here’s what you need to know about each step of the bankruptcy process so you can make the right choices for your situation.

Ramsey Solutions  Ramsey Solutions

A woman thumbing through an annual pocket calendar is wondering how long bankruptcy stays on a credit report.

How Long Does a Bankruptcy Stay on Your Credit Report?

9 Minute Read | Debt

Filing for bankruptcy doesn’t mean all your problems magically disappear. Find out how long a bankruptcy can stay on your record and what to do if you’re trying to rebuild your life after a bankruptcy.

Ramsey Solutions  Ramsey Solutions

Ramsey Solutions Blog

The Truth About Bankruptcy

6 Minute Read | Debt

Bankruptcy doesn't always mean your debts are wiped out free and clear. Know the truth about bankruptcy before you file!  

Ramsey Solutions  Ramsey Solutions