A Chapter 13 bankruptcy involves making arrangements to pay creditors according to a bankruptcy agreement. Usually this involves paying less than the total amount owed in a settlement that takes place over 36 to 60 months. You don’t actually make the payments directly to the creditors, though. You pay the trustee of the bankruptcy court, who then disburses creditor payments. A Chapter 13 bankruptcy also makes it possible to keep more of your property than a Chapter 7 process does.

The bankruptcy is filed with a federal bankruptcy court for your district. Your district is either the place where you live or the place where the bulk of your assets were located for the majority of the last 180 days. If you are filing business bankruptcy, the district would be decided by the location of the business or business assets.