Definition from Nolo’s Plain-English Law Dictionary
A type of consumer bankruptcy designed to help debtors reorganize their debts and pay all or a portion of them over three to five years. In Chapter 13 bankruptcy, debtors keep their property and use their income to repay creditors according to a monthly repayment plan. At the end of the three-to-five-year period, the balance of what the debtor owes on many types of debts is erased.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm