Credit Card Glossary: Terms and Definitions
Chapter 13 bankruptcy
Under Chapter 13 bankruptcy, an individual debtor repays debts under a three- to five-year plan that is supervised by the bankruptcy court. Its requirement to repay debts distinguishes it from Chapter 7 bankruptcies, under which most debts are erased. Chapter 13 bankruptcy was encouraged by the 2005 revision to bankruptcy law, which sought to force more debtors to repay debts.