Chapter 13

Chapter 13 of the Bankruptcy Code is a reorganization bankruptcy for individuals, only, who have less than $360,475 in unsecured debt and $1,081,400 in secured debt (these debt limits area adjusted annually). The purpose of a Chapter 13 bankruptcy is to help you repay your debts.   A Chapter 13 bankruptcy can assist you repay certain debts over time. 

Generally speaking, debtors will have to file a Chapter 13 bankruptcy if their income is above the median income in their state and their expenses show the ability the make a meaningful payment to their creditors.  Debtors who also have non-exempt assets which would be administered in a Chapter 7 bankruptcy will also want to file a Chapter 13 bankruptcy petition so that they can keep their assets.   There are also times that, even though, you qualify for a Chapter 7 bankruptcy, you will want to file a Chapter 13 bankruptcy.  These filing generally involve debts that are not dischargeable in a Chapter 7 bankruptcy or secured debts that you want to keep but have fallen behind in your monthly payments and want to bring the obligation current.   When you file a Chapter 13 bankruptcy petition, you need to show that you have enough income to meet your regular monthly expenses plus have the ability to pay an additional amount to a Chapter 13



All bankruptcy filings require the completion of a bankruptcy petition.   The bankruptcy petition is a very detailed federal court document that must be filed with the federal bankruptcy court located in the district in which you reside.  The petition is filed under the penalty of perjury (which means that if you intentionally fail to list an asset on the petition or some other required item, you could be criminally prosecuted). As a result, we will be asking you a set of very detailed questions about your financial history.  It is imperative that you take the time to completely filled them out and provide the requested documentation.  This will ensure that the bankruptcy schedules are completed correctly and that we are in the best position to advise you as to what you can expect.Chapter 13 bankruptcies can be very powerful as they can be used to pay back delinquent taxes, bring your house payments or other secured debt current, or used as a repayment device for your unsecured debt to protect your assets.

When you file for any chapter of bankruptcy, one of the most important protections you get happens immediately upon filing the bankruptcy petition with the court.  When the petition is filed, the “automatic stay” protection kicks in immediately and most all collection efforts against you are required to stop.  The automatic stay applies to most all collection efforts including lawsuits, collection calls, judgment enforcement, wage garnishments, bank levies, repossessions, and foreclosures. As a result of the automatic stay, you are able to focus on getting your life back under control.