Chapter 13

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Chapter 13 Bankruptcy is a reorganization of your debts to help you pay your creditors with a payment plan, usually between 36 to 60 months. This serves essentially as an interest free repayment plan where you usually pay a portion of the debt to all creditors. Chapter 13 is beneficial for clients who do not qualify for a Chapter 7 because of their high income or house equity.
Once you have completed the agreed upon payments during the plan term, the remaining balance is discharged after completing your bankruptcy plan.

By choosing to file a Chapter 13, you can:

  • Avoid paying and accumulating interest and penalties that credit cards and loans require.
  • Stop the foreclosure process of your home. A Chapter 13 allows you time to catch up on missed payments,.
  • Remove a second mortgage from your home.
  • If you have tax debt with the IRS you can repay the debt within a Chapter 13 plan.
  • Stop any repossession of your vehicle. Filing permits you to maintain your vehicle and pay it within the plan. All past due payments can be added to your plan.