CHAPTER 13

Chapter 13. 1. The chapter of the United States Bankruptcy Code allowing a person’s earnings to be collected by a trustee and paid to creditors by means of a court-approved debt-repayment plan if the person has a regular income. • A plan filed under Chapter 13 is sometimes called a wage-earner’s plan, a wage-earner plan, or an income-based plan. Chapter 13 allows the debtor to propose a plan of rehabilitation to extend or reduce the balance of any obligations and to receive a discharge from unsecured debts upon completion of the payments under the plan. A plan made in good faith will be confirmed if the creditors receive what they would have received under Chapter 7, and if the plan pledges all of the debtor’s disposable income for three years. [Cases: Bankruptcy  3701. C.J.S. Bankruptcy § 433.] 2. A bankruptcy case filed under this chapter. [Blacks Law 8th]