Chapter 13 Bankruptcy
Use a structured plan to address debt over time.
Chapter 13 involves a court-supervised repayment plan. It may be considered when keeping property, addressing arrears or reorganizing debt is a central goal.
Why Chapter 13 May Be Considered
The plan can address problems that Chapter 7 may not solve.
The usefulness of Chapter 13 depends on whether the proposed plan is feasible and satisfies legal requirements.
- Addressing certain missed mortgage or vehicle payments over time
- Protecting property that could create concerns in Chapter 7
- Managing priority debts that may not be discharged
- Seeking bankruptcy relief when Chapter 7 is not the appropriate path
General Process
The plan must be proposed, reviewed and carried out.
Chapter 13 cases involve more than filing documents. The debtor must make required payments and respond to issues that arise during the case.
- Detailed financial analysisReview income, expenses, property, arrears, priority debts and the proposed treatment of creditors.
- File the case and proposed planProvide complete schedules and begin payments as required.
- Confirmation processThe trustee and creditors may review or object, and the court determines whether the plan can be confirmed.
- Complete the planMaintain plan obligations and required payments, then seek the available case outcome.
Common Questions
Chapter 13 questions
These are general answers. Your rights and options depend on your specific facts and current law.
Do I need income for Chapter 13?
A feasible plan generally requires sufficient regular income. The amount and reliability of income must be reviewed.
Can Chapter 13 save a home from foreclosure?
It may provide a way to address certain arrears, but timing, affordability, the case posture and ongoing payments matter.
How long is the repayment plan?
The applicable commitment period depends on the case. Do not rely on a generic timeline without reviewing income and plan requirements.
What happens if I cannot make the payments?
Contact counsel promptly. Modification, conversion, dismissal or another response may need to be considered depending on the circumstances.
See whether a Chapter 13 plan is realistic.
Request a free consultation and bring current income, expense, mortgage and debt information.