CHAPTER 13 BANKRUPTCY
\t͡ʃˈaptə θˈɜːtiːn bˈaŋkɹʌptsi], \tʃˈaptə θˈɜːtiːn bˈaŋkɹʌptsi], \tʃ_ˈa_p_t_ə θ_ˈɜː_t_iː_n b_ˈa_ŋ_k_ɹ_ʌ_p_t_s_i]\
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The reorganization bankruptcy for consumers, in which you partially or fully repay your debts. In Chapter 13 bankruptcy, you keep your property and use your income to pay all or a portion of the debts over three to five years. The minimum amount you must pay is roughly equal to the value of your nonexempt property. In addition, you must pledge your disposable net income -- after subtracting reasonable expenses -- for the period during which you are making payments. At the end of the three-to five-year period, the balance of what you owe on most debts is erased.
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