IS FILING CHAPTER 13 BANKRUPTCY RIGHT FOR ME?

Chapter 13 is an alternative way to file bankruptcy. You must be deemed eligible; typically this process is for those still earning wages who are more able to manage their debt. During this process, we will create and submit a three- to five-year debt repayment plan to the bankruptcy court. The court then determines an amount that you must repay in the allotted period.

Following the agreed upon payment plan will eliminate your debts. The court may also discharge other remaining debts after you have successfully completed your repayment plan. Because Chapter 13 requires a structured payment plan, this solution is meant for those who have steady income. As long as you complete your repayment plan according to the agreement, there will not be any need to liquidate or sell property and other assets.

Similarly to Chapter 7, filing for Chapter 13 bankruptcy means that an automatic stay will go into effect. During this period, debt collectors and creditors cannot call you, lawsuits must stop, and any type of foreclosure or repossession attempts are halted.