About Chapter 13

Chapter 13 bankruptcy is commonly called “reorganization” because we are creating a 3 to 5 year plan to restore your financial health. Someone in Chapter 13 will make regular monthly payments to a trustee to treat all of their creditors. In many cases, this payment is less than the amount owed. Chapter 13 bankruptcy is a good option for individuals and families that may not qualify for Chapter 7 bankruptcy because they exceed median income limits set by the bankruptcy statute. Contact our office today to schedule a consultation.

Chapter 13 bankruptcy will also do the following:

  • Stop foreclosure
  • Stop vehicle repossession
  • Allow time to catch up on missed mortgage payments
  • Stop IRS and DOR levies
  • Pay back income taxes owed to the IRS or Department of Revenue
  • Remove second mortgages and home equity lines in certain circumstances
  • Modify car loans in certain circumstances
  • Strip judicial liens from real estate

A trustee is appointed by the court to administer your case. The Trustee will collect your monthly plan payments and distribute the funds to your creditors according to the reorganization plan filed by your attorney. This repayment to your creditors can be much less than the total amount owed, with no tax consequences.

Stop Foreclosure

Chapter 13 bankruptcy stops foreclosure the moment a case is filed. It allows you to resume making monthly mortgage payments to the lender while catching up on missed payments in fixed monthly payments over three to five years. As long as you meet your obligations under the plan, your creditors cannot foreclose on your home.

If you face foreclosure, wage garnishment, or are simply tired of harassment by creditors, call us today. We can help today.