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    • Select My State
      • Utah
      • Colorado
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      • New Jersey
      • Maryland
      • New York
    • Learn
      • Chapter 7
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      • Exempt Property
      • Automatic Stay
      • Qualifying for Chapter 7
      • Nondischargeable Debt
      • Privacy Policy
    • Zero Down
    • Attorneys
    • Client Intake Form

888-DEBT-188 or 888-332-8188


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Chapter 13

Chapter 13 is sometimes known as "reorganization" or the "payment plan."  Contrary to what people think, you generally do not pay back your debt in a Chapter 13.  In fact, most of your debt can often be discharged.  


Where a Chapter 7 focuses on your assets, a Chapter 13 focuses on your monthly budget.  Instead of looking for you to give up your nonexempt assets, the court wants you to give up your available income in the form of a monthly payment.  


So whether you have 10k or 100k in dischargeable debt, your payment will be the same.

 

Most of our Chapter 13 clients pay less than 10% to their unsecured creditors and the rest of the debt is discharged.

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 Most of our clients file under Chapter 7.  Chapter 7 is quick and you will receive a 100% discharge of your qualified debt.  Chapter 13 plans last between 3 and 5 years, so why do it?  The main reasons people choose Chapter 13 are:

  • Household income is above median so you can't file a 7
  • Filed Chapter 7 within the last 8 years
  • Mortgage is behind so you keep your home and put mortgage arrears into a plan
  • Strip a second or third mortgage if your first mortgage is greater than your home's value
  • Car payment is too high so you can lower your payment and interest rate on most loans older than 2.5 years
  • Need to stop garnishment and get lower payments on nondischargeable debts with child support, state taxes, IRS, governmental entities, etc.
  • You have significant non-exempt assets you don't want to lose

Chapter 13 is an attractive option for about a third of our clients who need the benefits that they can't get in a Chapter 7.  

Your consultation with our attorneys will help you see which Chapter 13 advantages apply in your situation. 

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More About Chapter 13

What is exempt property?

What is the Automatic Stay?

What is the Automatic Stay?

Find out what property you can keep and still discharge your debts.  You'll be surprised, most debtors lose nothing at all.

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What is the Automatic Stay?

What is the Automatic Stay?

What is the Automatic Stay?

The very moment your bankruptcy case is filed, creditors are frozen.  They cannot take any collection action against you. 

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What Debts Must I Keep?

What is the Automatic Stay?

How Do I Qualify for Chapter 7?

While most of your debt will be discharged in bankruptcy, it is important to know that certain types of debt cannot be discharged and must eventually be repaid.   

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How Do I Qualify for Chapter 7?

How Do I Qualify for Chapter 7?

How Do I Qualify for Chapter 7?

Generally, if you earn more than the state median income for your household size, you can't file Chapter 7.  Find out how we can help you qualify.

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Keeping My Car and House

How Do I Qualify for Chapter 7?

Stop Garnishment & Repossession

In both Chapter 7 and 13, you will have the option to keep your vehicle loans and mortgages.  There are certain limitations, but generally, if you can afford to stay in the loans, you have the option to do so. 

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Stop Garnishment & Repossession

How Do I Qualify for Chapter 7?

Stop Garnishment & Repossession

Because of the automatic automatic stay, we can stop creditors.  If we file before your payday, the garnishment money is yours.  If we file before a repo, you may keep the car.  

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