Service Details

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy, often called a "wage earner's plan," allows individuals with regular income to develop a plan to repay all or part of their debts over three to five years. Our attorneys provide expert guidance to clients throughout California, Texas, and Illinois, with remote consultations available for qualified cases.

Unlike Chapter 7, Chapter 13 doesn't require liquidation of assets and allows you to keep your property while catching up on secured debt payments like mortgages and car loans. It's also a powerful tool for foreclosure defense.

Key Benefits

• Save your home from foreclosure and catch up on mortgage arrears over time
• Reschedule secured debts and extend them over the plan period
• Protect co-signers on consumer debts
• Consolidate payments to creditors through the trustee
• Pay back non-dischargeable debts like taxes and student loans over time
• No direct contact with creditors during the repayment period

The Chapter 13 Process

1. Credit counseling: Complete a mandatory pre-filing credit counseling course.
2. Develop a repayment plan: We work with you to create a feasible repayment plan based on your income, expenses, and debt.
3. File petition and plan: We prepare and file your bankruptcy petition, schedules, and proposed repayment plan with the appropriate court in your state.
4. Automatic stay begins: Collection efforts must cease, including foreclosure proceedings and repossessions.
5. Meeting of creditors: You'll attend a meeting with the trustee (and possibly creditors) about 30-45 days after filing.
6. Confirmation hearing: The court will hold a hearing to determine if your plan is feasible and meets legal requirements.
7. Plan payments: You'll make regular payments to the trustee, who distributes funds to creditors according to your plan.
8. Financial management course: Complete a required financial management course.
9. Discharge: After completing all plan payments (3-5 years), remaining eligible debts are discharged.
10. Plan length: The plan length can be from 12 to 60 months, depending on what you can afford.