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.
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:
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.
Find out what property you can keep and still discharge your debts. You'll be surprised, most debtors lose nothing at all.
The very moment your bankruptcy case is filed, creditors are frozen. They cannot take any collection action against you.
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.
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.
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.
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.