As per this Chapter under the United States Bankruptcy Code, any individual who has filed for a Chapter 13 bankruptcy needs to undergo a financial reorganization under the supervision of a federal court. Not every individual, who is badly in debt, can file for a Chapter 13 bankruptcy. There are certain criteria that need to be fulfilled so as to file for a Chapter 13 bankruptcy. Most important among these is that the applicant must have a steady income. This is because once an individual files for a bankruptcy, he/she also need to device an appropriate repayment plan in consultation with the lender and a bankruptcy trustee appointed by the court so that the loan is paid back. Depending on this, monthly payments have to be made. Steady employment and regular monthly income is required so as to fulfill these payments.

In a Chapter 13 bankruptcy, one can repay the entire debt either by making a single payment or paying though equated monthly installments. Many people even use hard money in order to pay back their debts as a single payment rather than opting for monthly payments. Hard money can be described as a short term loan that is obtained from a private lender at a high interest rate against pledging property as collateral or security. One doesn’t require any credit check in order to get qualified for a hard money loan.