Chapter 13 is commonly referred to as a reorganization bankruptcy. Under Chapter 13, you propose a plan to repay a percentage of what you owe back to your creditors. Whatever you do not pay back is then discharged at the end of your case. 

Common reasons why people file for Chapter 13 bankruptcy include: 

• Recent Tax Debt;

• To Protect Assets That Might Be Liquidated in a Chapter 7;

• The (Potential) Ability to Remove a Second Mortgage;

• The (Potential) Ability to Cram-Down the Value of Your Vehicle.

Chapter 13 is complex and often the source of significant confusion. Feel free to contact us at (916) 277-8407 and we will gladly explain to you the pros and cons of Chapter 13, and what it can do for you.