Chapter 13

Protect Your Property & Your Assets

Chapter 13 bankruptcy consolidates existing debts into one sum that is paid to a Trustee over a 3 to 5 year period. This chapter is for those who have a regular income and have income sufficient to meet the plan, allowing for mortgage payments as well as living expenses. In addition, debts must not exceed $336,900 in unsecured debts and $1,010,650 in secured debts. These dollar amounts are adjusted periodically.

Together the debtor and his or her attorney formulate a plan to repay the required debts. Then once-a-month payment is given to the Trustee, who distributes the proceeds to approved creditors. Chapter 13 plans last between 3 and 5 years, depending on your income. Plans may not last longer than 5 years.

Upon filing your Chapter 13 bankruptcy, your creditors are provided notice and may not contact you or attempt to collect a debt. Your attorney will handle all necessary contact with creditors. Saving a home from foreclosure is one benefit of filing a Chapter 13 bankruptcy. Chapter 13 is also for those who do not qualify to file a Chapter 7 bankruptcy, but who still need protection under the bankruptcy code. Chapter 13 is more complicated than a Chapter 7 but also has more options for those who have assets they wish to maintain.

Making Informed Decisions About Your Financial Future

Keep in mind, bankruptcy laws were put in to place to protect individuals and offer them a fresh start. That is why it is important to avail yourself of bankruptcy protection if you are in a financial situation that warrants it. Understanding your options allows you to make informed choices. Contact Attorney Chenelle to discuss your options and put your plan into place.

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.