Filing for bankruptcy under Chapter 13 of the bankruptcy code results in ____ of debts.

Question

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Filing for bankruptcy under Chapter 13 entails reorganization of debts,, which refers to implementing a plan of restructured payments to creditors. This approach lets individuals or a business proceed with operations as usual, and the bankruptcy court supervises the debtor's repayment plan. Therefore, it is a type of reorganization, not liquidation, reduction, reclaiming, or negating of debts.

Filing for Bankruptcy Under Chapter 13 of the Bankruptcy Code