Chapter 13 is a reorganization bankruptcy, in which the debtor proposes a plan of reorganization to keep his or her assets and pay creditors over an extended time period, usually three to five years. This option is available to individuals and allows them to create a plan to pay off their debts while keeping their assets, such as their house or car, as long as they can make the agreed-upon payments.

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Chapter 13 Is

Question 68

Multiple Choice

Chapter 13 is:

A) The quickest and simplest form of bankruptcy; it is the liquidation of assets with the proceeds distributed to the creditors
B) A reorganization bankruptcy,in which the debtor proposes a plan of reorganization to keep his or her assets and pay creditors over an extended time period,usually three to five years
C) A sale of a debtor's nonexempt property and the distribution of the proceeds to the creditors
D) None of the choices are correct

Correct Answer: