Which statement describes Chapter 13 bankruptcy? Select all that apply.

Question

all of the debtor's assets are divided amongst their creditors
debtors lose all of their assets
debtors are allowed to keep their assets
debtors establish repayment plans

Answer 1

The statements that describe Chapter 13 bankruptcy are:

• Debtors are allowed to keep their assets.
• Debtors establish repayment plans.

In Chapter 13 bankruptcy, debtors typically do not lose all their assets and instead propose a repayment plan to pay back part or all of their debts over a specified period, usually three to five years.