Chapter 13

Chapter 13 Bankruptcy – Reorganize

In most cases, people who file for Chapter 13 bankruptcy have suffered from a temporary loss that has put them too far behind in debt to catch up on their own. Chapter 13 bankruptcy does not completely erase debt, but instead consolidates debt and restructures it into a monthly payment that you can afford.

Usually people seeking Chapter 13 bankruptcy have enough income to cover living expenses, but not enough to pay off all debts in full. When Chapter 13 is awarded, the debtor pay for living expenses first, and then any left over money is used to repay creditors, even if that payments is just pennies on the dollar. Chapter 13 bankruptcy cases typically last three to five years from the initial filing to the date of discharge, depending on the person’s ability to pay.

Some people and families may benefit from this type of bankruptcy because they make too much money or own too much property to file for Chapter 7 relief. When a person does not qualify for Chapter 7 bankruptcy, he or she is likely eligible to file for Chapter 13 instead.

Your attorney can explain how Chapter 13 may benefit you, and why it may be to your advantage to obtain debt relief under a Chapter 13 bankruptcy. We would be happy to answer your questions. Please call or email us so that we may advise you given your specific needs and circumstances. Initial attorney consultations in person and by phone are free.

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