In a Chapter 7, non-exempt property of the debtor is sold to satisfy the claims of creditors. A Chapter 13 allows a debtor to keep non-exempt property which would otherwise be liquidated in a Chapter 7 and allows the debtor to pay the Chapter 13 Trustee, over 3 to 5 year time period money in an amount that equals or exceeds the value of the property the debtor wishes to retain.

This allows the debtor to retain the property and is an important consideration for many people facing financial difficulties but who wish to keep the assets which they have like a car, family jewelry and other assets which they may have accumulated over the years.

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