What is provided under Chapter 13 bankruptcy protection?

Chapter 13 bankruptcy protection specifically allows individuals with a regular income to create a repayment plan to pay back all or part of their debts over a specified period, usually three to five years. This option is designed for individuals who want to keep their assets while they catch up on missed payments or manage their debt more effectively. Unlike Chapter 7 bankruptcy, where assets may be liquidated to pay creditors, Chapter 13 enables debtors to maintain ownership of their property, allowing them to reorganize their financial situation under court supervision. This structure helps individuals avoid foreclosure and manage their debts in a way that is sustainable based on their income level.

In contrast, the other options do not accurately reflect what Chapter 13 entails. Complete debt relief without repayment and the sale of assets to pay creditors are characteristics of different bankruptcy chapters and scenarios. Additionally, Chapter 13 does provide protections from creditors while repayment plans are in effect, which negates the idea that there is no protection offered.