Legal Dictionary of Pakistan

Chapter 13

1. The chapter of the Bankruptcy Code allowing a person's future earnings to be collected by a trustee and paid to unsecured creditors. 0 A plan filed under Chapter 13 is sometimes called a wage-earner's plan, a wage earner plan, or an income-based plan. A Chapter 13 debtor does not receive a discharge of debts; rather, Chapter 13 allows the debtor to propose a plan of rehabilitation to extend or reduce the balance of any obligations. A plan made in good faith will be confirmed if the creditors acquiesce, if they receive the fair value of their claims, or if the plan pledges all of the debtor's disposable income for three years. 2. A bankruptcy case filed under this chapter.