Advantages

• Debtors who file for Chapter 13 bankruptcy have some advantages over those who file Chapter 7 and those who choose not to file at all. Chapter 13 filers may be able to save their homes from foreclosure by having the past due payments reorganized with upcoming payments. Debtors fling for Chapter 13 may only have to pay for a portion of all debts owed rather than the full amount. Chapter 13 also allows filers to keep personal belongings, reducing the need to liquidate, which may be required when filing for Chapter 7.
  
  

Filing

• You must file for Chapter 13 bankruptcy in the area where you reside. You will be required to include a list of your assets, income, expenditures, any contracts or leases and a statement of your financial affairs. Before filing you must also provide a list of all of your creditors, contact information and how much you owe. Consumers wishing to file bankruptcy must also complete credit counseling and provide a certificate of completion before filing.
  
  

Eligibility

• Those consumers who cannot qualify for a Chapter 7 bankruptcy due to their income or debt amount may be eligible for Chapter 13. As of June 2011 the U.S. government allowed consumers with less than $360,475 in unsecured debts and less than $1,081,400 in secured debts to file for Chapter 13 bankruptcy. To be eligible you must also have a steady income with plenty of disposable income after all necessities, such as groceries, gas and utilities, have been paid.
  
  

Discharge

• Once you have completed the requirements listed in your Chapter 13 bankruptcy, you will be granted a discharge. Discharge papers are given when all payments have been made by and all collectors are satisfied. A discharge releases you from any further collection of debts listed in the bankruptcy case.