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Chapter 13 Bankruptcy

A Chapter 13 Bankruptcy filing is most attractive for those individuals who have fallen behind on mortgage payments and for filers who earn too much to file under a Chapter 7.


For homeowners who have defaulted on their mortgage payments, only a Chapter 13 will enable them to make up any outstanding payments. If you are facing foreclosure, a Chapter 13 bankruptcy filing may help you save your home.

Some filers simply earn too much to qualify for a Chapter 7 bankruptcy and have no choice but to file under a Chapter 13.

When you file for bankruptcy under a Chapter 13 code, you propose a payment plan to the Court. The payment plan must indicate the following:

  • How much of funds you have available to repay creditors after basic monthly expenses have been paid, how any left over funds will be split among your creditors.
  • It must be delivered in good faith.
  • Unsecured debtors must be paid, at the very least, just as much under a Chapter 7 bankruptcy filing.
  • It must also indicate that all disposable income will be paid into the plan.

Once you have filed for Chapter 13, it is imperative that your payments are made in full and on time. Chapter 13 payment plans typically last from 3 to 5 years, after which any remaining balances will be discharged.

Similar to a Chapter 7 filing, under a Chapter 13 code will prohibit all collection efforts from debtors, and may even put a stop to wage garnishments, law suits and impending judgements against you.

Additionally, A Chapter 13 filing may provide assistance with debt that may not be dischargeable in a Chapter 7 filing such as some taxes and student loans

If you would like learn more about Chapter 13 bankruptcy filing, please contact an attorney on (888) 433 8444