Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy is a reorganization of your debt.  Unlike a Chapter 7, which simply liquidates your unsecured debt and has no payments, a Chapter 13 Bankruptcy is a powerful tool to pay creditors on terms that are favorable to you, the debtor.  This chapter of bankruptcy allows the Debtor to keep property that has delinquent payments.  A Debtor normally utilizes a Chapter 13 Bankruptcy in the following situations:

  • First, a Chapter 13 Bankruptcy can allow a Debtor to stop the foreclosure of a residence or repossession of a vehicle.  The Chapter 13 repayment plan allows the Debtor to take any mortgage arrears or delinquent property taxes and pay back the mortgage company over a three to five year period.  This provides the Debtor an opportunity to impose payment terms favorable to the Debtor, rather than unrealistic terms imposed by a creditor.
  • Furthermore, debts that may not be dischargeable in a Chapter 7 can be paid back through a Chapter 13 Bankruptcy.  Examples of non-dischargeable debts are delinquent income taxes and back due child support.  The Chapter 13 Bankruptcy allows the Debtor to repay these debts over the three to five year payment plan and in most situations prohibits wage garnishment.
  • We dedicate ourselves to solely filing bankruptcy cases, and would be happy to assist you on your journey to financial freedom.

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