Chapter 13

A chapter 13 bankruptcy functions as a plan to re-organize your liabilities and help you get a fresh start unburdened by mounting unsecured debt (credit cards, medical bills, etc.).  Such a plan requires payments to a bankruptcy trustee or administer.

Chapter 13 can provide bankruptcy relief to you if your earnings are too high for Chapter 7, or if Chapter 7 would result in the loss of property you want to keep.  If you are trying to stop a foreclosure, get a car back after repossession, or repay debts over time, Chapter 13 can make sense.

The amount of your plan will depend on a number of factors, including:

  • your household income
  • your disposable income
  • how much non-exempt equity you own
  • what you are trying to accomplish by filing

Chapter 13 is sometimes called the “wage earner” plan because it works best if you have a steady, regular source of income.

An experienced bankruptcy lawyer will review your list of debts and assets as well as your household budget and advise you about your bankruptcy options.