One of the other common personal bankruptcy filings is Chapter 13 bankruptcy. The aim of Chapter 13 bankruptcy is not to completely wipe out the debts, but to create a payment plan with the debtors. This repayment is usually within a 3 to 5 year period of time. The amount of the payment and the length of time that payment will be required, is completely up to the Court, based on factors such as income, expenses and property. It is an attractive option to those individuals who are interested in retaining their non-exempt property. This is also a possible option for a person who fails the “means test” for Chapter 7 bankruptcy, meaning it is determined that the individual has the income means to make payments toward his or her debts.
