Filing For Bankruptcy: Chapter 13
A Smarter Way To Restructure Your Debt
Take Control Of Your Finances Without Losing What Matters Most
If you have a steady income but are struggling with bills, filing for Chapter 13 may be your solution for financial recovery. DebtErasers chapter 13 bankruptcy attorneys help individuals reorganize their debt into affordable payments while protecting their home, car, and other vital assets.
What Is Chapter 13?
Chapter 13 is commonly known as the “wage earner’s plan” since it lets you hold onto your property while working out a payment plan. Unlike Chapter 7, which involves selling off assets, Chapter 13 protects your assets and enables you to pay back a portion of your debt over 3 to 5 years through a court-approved plan based on your income.
What Chapter 13 Can Do For You?
Stop Foreclosure And Save Your Home
Chapter 13 puts an immediate hold on foreclosure proceedings, giving you time to catch up on missed mortgage payments and keep your property.
Prevent Car Repossession
Reorganize your auto loan into a more affordable payment plan and stop vehicle repossession, even if your car has already been repossessed.
Restructure Tax Debt
Repay taxes to the IRS or state with manageable terms, and potentially reduce the total owed.
Consolidate Unsecured Debt
Combine medical bills, credit cards, and personal loans into one predictable monthly payment, often with reduced interest and no late fees.
Keep Non-Exempt Property
Protect assets that could be lost in Chapter 7, such as a second vehicle or family heirlooms.
Relief From Harassment
The automatic stay goes into effect immediately, stopping calls, wage garnishments, lawsuits, and other collection activities.
Protect Your Assets
Protect any valuable assets from a Chapter 7 liquidation and still take care of your debt. Chapter thirteen automatic stay will protect your assets from creditors, liens, or liquidation.
Is Chapter 13 Right for You?
You might benefit from Chapter 13 if you:
- Have a steady source of income
- Are you behind on mortgage or car payments
- Owe back taxes
- Want to avoid foreclosure or repossession
- Have non-exempt property you want to keep
- Don’t qualify for Chapter 7
You don’t need to be in crisis to get help. Chapter 13 is a strategic solution that provides structure, stability, and peace of mind.
How Chapter 13 Works
Filing Chapter 13 with DebtErasers is straightforward and supportive:
Free Initial Consultation
Our attorneys will review your financial situation and assess your eligibility.
Create a Custom Repayment Plan
Based on your income, expenses, and debts, we develop a monthly payment plan tailored to your goals.
File Your Bankruptcy Case
Once filed, the automatic stay takes effect, stopping all collection efforts immediately.
Attend a Meeting of Creditors
You’ll meet briefly with a DebtErasers bankruptcy trustee to review your plan.
Make Monthly Payments
Payments are made to the trustee, who distributes them to creditors over a 3 - 5 year period.
Discharge of Remaining Debt
Upon successful completion, any remaining eligible unsecured debts are discharged.
Frequently Asked Questions
Will I Lose My Home Or Car?
No. Chapter 13 is designed to help you keep essential assets while catching up on payments.
Who Is Eligible?
To be eligible, you must demonstrate a regular income and have unsecured debts totaling less than $465,275 and secured debts under $1,395,875 (as of 2024).
How Long Does It Last?
Typically, Chapter 13 repayment plans last three to five years, depending on factors such as your income level and the total amount of debt you owe.
Can I Include Tax Debt In Chapter 13?
Yes. Many types of tax debt can be included and repaid under more favorable terms.
Why Choose DebtErasers?
At DebtErasers, we don’t just handle paperwork. We fight for your financial future. Our experienced -Chapter 13 bankruptcy attorneys can:
- Customize repayment plans that work for your life
- Handle all communication with creditors
- Advocate for your interests in court
- Support you from start to finish
Thousands have trusted us to guide them through Chapter 13 bankruptcy. You can too.