Chapter 13 bankruptcy is used to:

• A. An immediate liquidation of all assets.
• B. A plan to pay off all debts in full within a fixed period.
• C. A requirement that creditors must agree to the plan.
• D. A plan to pay off all or some debt over a specified period of time.

Answer: (D)

Chapter 13 focuses on a repayment plan for individuals with regular income that stretches over a set period, typically several years. It reorganizes debts into a court-approved plan that allows you to keep your property and make regular payments to a trustee who then distributes funds to creditors. The plan is designed to pay back all or part of what you owe over that period, rather than forcing immediate liquidation of assets. While creditors can oppose the plan, final approval comes from the bankruptcy court rather than simply their agreement. The essential idea is that Chapter 13 is about paying back debts over time, not about immediate liquidation or requiring blanket creditor consent.