Having decided to file for bankruptcy, you are confronted now with two choices – filing for total bankruptcy or liquidation under Chapter 7 or filing under Chapter 13. With some information about chapter 13, you can make an informed decision. Here is all you wanted to know about chapter 13 Bankruptcy.

Chapter 13 Bankruptcy is favored by people with assets they want to save and who are willing for a partial or full repayment of debts over a period of time. When you file for bankruptcy under chapter 13, it shows on your credit report for 7 years unlike chapter 7 that continues to show for 10 years. Depending on the extent of your debt and your income, under chapter 13, you might have the opportunity of retaining your property like home or car that has been mortgaged. You will also be given a time frame varying from three to five years to pay back your debts.

Chapter 13 bankruptcy filing may have a less negative impact, as it shows that you are willing to keep your debt obligations. When filling up forms for bankruptcy, you will need information regarding list of all your creditors and the details of the credit plan for each, your income details, your property details and your monthly living expenses details. However, bankruptcy should be considered only as a last resort because it lowers your credit worthiness to a large extent.