Word: Chapter 13
Definition:
The chapter of the Bankruptcy Code providing for the adjustment of debts of an individual with regular income, often referred to as a ‘wage-earner’ plan.
Sample Sentence:
The debtor filed under Chapter 13 to retain her home and pay off debts over five years.
Why It Matters:
Chapter 13 helps individuals avoid foreclosure and repay debts over time.
Quick Tip:
Used by individuals with steady income who want to keep their property.
Source: https://www.uscourts.gov/glossary
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