This category concerns the process and issues of filing for a Chapter 13 'reorganization' bankruptcy for individuals, who have regular income and enough money left over each month to pay back some of their debts (as opposed to those eligible for Chapter 7 'liquidation' bankruptcy). Individuals and sole proprietor companies can apply for Chapter 13 bankruptcy if they meet eligibility requirements. It offers benefits but also requires a payment plan for the debts. It may be used by people who have non-dischargeable debts like for alimony or child support, or for people who have fallen behind on house or car payments and want to catch up on payments and keep the property. It can also be used for debt relief, to lower credit card payments, stop a lawsuit, or prevent wage garnishment.
