Which form of federal bankruptcy is best suited for an individual who wishes to repay their loans over a specified period but is currently unable to do so?

The correct choice, Chapter 13 bankruptcy, is specifically designed for individuals who have a regular income and want to reorganize their debt while making payments over a set period, typically three to five years. This option allows debtors to keep their property and catch up on missed payments under a court-approved repayment plan, making it ideal for those looking to repay their loans despite current financial difficulties.

Chapter 7 is more focused on liquidating assets to pay off debts and may not allow for the restructuring of payments, which is essential in situations where the individual wishes to repay rather than discharge debts. Chapter 11 is generally used for business reorganization and is not typically an option for individuals and Chapter 12, while meant for family farmers and fishermen, is not applicable to the broader category of individual debtors wishing to repay loans over time. Thus, Chapter 13 stands out as the suitable option for individuals desiring to manage and repay their loans in a structured manner.