Chapter 13 Bankruptcy
Chapter 13 bankruptcy, a/k/a the “wage earner” or “reorganization” bankruptcy, differs quite a bit from Chapter 7 bankruptcy. In a Chapter 7 bankruptcy, most debts are eliminated in exchange for relinquishing non-exempt property. In a Chapter 13 bankruptcy, you don’t have to necessarily relinquish property, but you must use your income to pay some or all of what you owe to your creditors over a period of time, which ranges from three to five years.
Repayment plans are typically determined by what a person can afford, and not by how much they owe. Even under a Chapter 13 repayment plan, you may receive a discharge of many, if not all, unsecured debts. Chapter 13 is generally available only to individuals with regular income and to individuals who operate a business as a sole proprietorship. For small businesses other than sole proprietorships, Chapter 11 may provide the appropriate relief.
You should consider Chapter 13 if you:
- Have a pending foreclosure sale that you need to STOP
- Are behind on secured debt payments that you can catch up on if given some time
- Have valuable property which you cannot exempt but would still like to keep
- Have non-dischargeable debt in a Chapter 7 bankruptcy and would like to pay it off with little to no interest
We offer competitive rates and flexible payment plans. The cost of filing will depend on the complexity of your case. Please contact our office to schedule a FREE consultation with an experienced bankruptcy attorney.