What Is Chapter 13?
What's It Mean?
A Fresh Start...
Congress created a legal way to start over by paying off overwhelming bills with easier payments.
Debtor Makes Affordable Payments Based on Future Disposable Income to Pay Off Creditors
Applies to Debtors with Regular Income Who Can Afford to Pay at Least a Nominal Monthly Amount to Their Creditors
Payment Plans End In Only 3 to 5 Years
Entire Process Carried Out Under Supervision of Courts - Your Interests are Safeguard by Your Lawyer
Chapter 13: Allows debtor opportunity to repay some or all their debt under better terms.
Frequently Asked Questions
How does Chapter 13 Bankruptcy work?
- Keep All Property
- Court Approves New, Interest-Free Plan for Repayment
- Written Plan Created Giving Details of All Transactions & Duration
- Repayment Must Begin Within 30 to 45 Days After Case Started
- Creditors Must Strictly Adhere to the Approved Payment Plan - Creditors Cannot Collect Any Claims From Debtor Outside of the Court-approved Payment Plan
- Lawyer Prepares New, Affordable Repayment Plan Suited to Your Unique Financial Situation
What are the advantages of Chapter 13 over Chapter 7 Bankruptcy?
- Broader Discharge
- Modify Some Secured Debts and Keep Property
- The Court Can Approve a Repayment Plan Even if Creditors Disagree
Who can file for Chapter 13 Bankruptcy?
- Individual With Regular Income
- Meet Other Criteria - Lawyer Will Explain This
How can I file for Chapter 13 Bankruptcy?
- Determine that Chapter 13 Is Best Solution - Need Help, Contact Us.
- Prepare Budget
- Evaluate Your Unique Case - Determine If It Requires Filing Chapter 13 or If It Can Be Managed Some Other Way
- Determine & Implement Methods To Deal With Secured Creditors
- Devise Chapter 13 Plan - Fill Out Forms
- Pay Filing Fee - Complete Process of Filing Forms & Pleadings
- Attend Meetings You Are Required To Attend - Creditors, Court Hearings, Etc.
- Obtain Discharge Once All Payments Have Been Made - Terminate Plan