In short
Chapter 13 lets an individual with regular income and debts below set limits keep their property and repay creditors under a court-approved plan lasting three to five years.
Key takeaways
- Debts covered by the plan are discharged once all plan payments are made.
- Only the debtor can file; creditors can't force a Chapter 13 case.
- The automatic stay also protects co-debtors on consumer debts.
Where it's tested
REG: Debtor-Creditor & Bankruptcy — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
A creditor takes a purchase money security interest in equipment and files a financing statement 15 days after the debtor receives possession. An earlier creditor had already perfected a security interest covering all of the debtor's equipment. Who has priority in the new equipment?