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Chapter 13 bankruptcy is a reorganization and repayment plan that protects the debtor from collection action including forclosures, repossesions, and garnishments during a case and discharges any unpaid balance of dischargeable debts at the end of the plan.
Chapter 13 allows the debtor time to pay debts that can't be discharged, like recent taxes or back child support; to cure defaults on home mortgages; and to eliminate that part of a lien that is greater than the value of the assets.
Unlike credit management plans outside of bankruptcy, creditors don't get to choose whether to be bound by the plan or what percentage of the debt will be discharged.
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