Filing Chapter 13 – Your Road To Financial Freedom


Filing Chapter 13 bankruptcy provides a solution to people who earn regular income, but have an insurmountable amount of debt. Filing a Chapter 13 payment plan permits filers to make up past-due payments over time – usually over three to five years, after which some unsecured debt may be discharged.

Filing Chapter 13 - Instant Relief from Financial Stress

When you file a Chapter 13 bankruptcy or a Chapter 7, the Automatic Stay goes into effect. The Automatic Stay is a provision in bankruptcy law that prohibits creditors from engaging in any form of debt collection, including wage garnishments, foreclosure, lawsuits, debt collector calls and letters.

Filing Chapter 13 Bankruptcy Basics

Chapter 13 bankruptcy caters to individuals with valuable property and a high level of secured debt. A Chapter 13 bankruptcy will enable them to manage their debt and keep their property.

How A Chapter 13 Bankruptcy Filing Works

Similar to a Chapter 7 bankruptcy filing, your bankruptcy lawyer will prepare your petition containing information about your debt, assets and income. You are also required submit a proposed payment plan with your petition. The payment plan must indicate how future income will be used to pay past due balances with current payments. Once your case has been filed, the Court will assign a Trustee to review your case. Both creditors and the Trustee will review the plan and may raise objections.

Filing a Chapter 13 Bankruptcy – The Discharge

Filing a Chapter 13 bankruptcy may result in some unsecured debt being discharged. This means that you are no longer obligated to pay back this debt. However, some creditors and debt collectors may continue to harass you. If a creditor or debt collector persistently harasses you to pay back debt that was discharged, that company is in violation of the law. When that does happen, the company can be sued and you may be entitled to claim damages.

Filing Chapter 13 Bankruptcy – Eligibility

Filing Chapter 13 does not require you to pass the means test. The basic requirements are simple:

  • Your unsecured debt cannot exceed $383,175 and you secured debt cannot be more than $1,149,525; and
  • You have to earn a regular source of income to make the monthly payments.

Filing Chapter 13 bankruptcy – Advantages

  • Filing a Chapter 13 will give you breathing room to make up past-due payments over time.
  • Chapter 13 bankruptcy prevents foreclosure, wage garnishments, lawsuits and puts an end to creditor harassment.
  • A Chapter 13 bankruptcy may get you on your way to financial freedom.

Filing a Chapter 13 bankruptcy is three to five year financial commitment. It is paramount that your bankruptcy attorney is familiar with the intricacies of a Chapter 13 bankruptcy. Our experienced Chapter 13 bankruptcy attorneys have helped thousands of individuals from coast to coast with their Chapter 13 cases. Schedule your free consultation today.