Chapter 13 is typically chosen by people who have fallen
behind on their secured debt payments and want to propose a plan to catch up on the payments over time and keep their property.
Not exact matches
Chapter 13 allows you to repay
secured debts, even if you're
behind on payments, without having your property seized.
If you have some
secured debts (those which you have obtained by placing collaterals), and if you are
behind on your bills, the creditor may ask the court to raise the «automatic stay» in order to repossess or foreclose
on your property.
If you are so far
behind on your payments that you are afraid the lender will repossess the asset
secured by your loan, and you fear that bankruptcy may be the ultimate result, re-negotiating the
debt may be an alternative to bankruptcy.