Chapter 13 Bankruptcy
Keep your home and property while managing debt through structured repayment
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a legal process that allows individuals with regular income to develop a plan to repay all
or part of their debts over a period of three to five years. It’s often referred to as a ‘wage earner’s plan’ and is
designed to help you catch up on missed payments for your house or car, and protect your assets from
foreclosure or repossession while you make payments over time. Unlike Chapter 7, you don’t have to sell your
property to pay off debts.
Eligibility for Chapter 13
Individual Filers
Only individuals or spouses filing jointly are eligible. Businesses cannot file for Chapter 13.
Regular Income
You must have a stable and regular source of income to make plan payments.
Debt Limits
Your secured and unsecured debts must be below a certain amount, which is updated periodically.
Prior Filings
You cannot have had a bankruptcy case dismissed within the last 180 days for specific reasons.
The Chapter 13 Process
File Petition
You begin by filing a petition with the bankruptcy court in your district.
Propose Plan
Submit a repayment plan detailing how you will pay creditors over 3-5 years.
Make Payments
Start making payments to the Chapter 13 trustee according to your proposed plan. 3
Confirmation Hearing
The court holds a hearing to confirm if your plan is feasible and meets legal standards.
Complete Plan
Continue making payments for the entire plan duration (3-5 years).
Receive Discharge
Once all payments are made, remaining eligible debts are discharged by the court.
Typical Timeline
A typical Chapter 7 bankruptcy case takes about 4 to 6 months from the time the petition is filed until the debts are discharged. This can vary depending on the complexity of your case.
Potential Outcomes
The primary outcome is the discharge of your eligible debts, providing a financial fresh start. You can stop creditor harassment, prevent wage garnishment, and begin rebuilding your credit.
Justice Bankruptcy's Role in Chapter 13
Our experienced team helps you navigate the complexities of Chapter 13 bankruptcy with professionalism and care. We provide:
Realistic Repayment Plans
Custom plans based on your income, expenses, and debt obligations.
Foreclosure Prevention
Immediate action to stop foreclosure and protect your home.
Court Compliance
All filings meet court requirements and deadlines.
Ongoing Support
Guidance throughout your 3-5 year repayment journey.
Ready to Take Control of Your Financial Future?
With over 100 years of combined legal experience, our team is ready to guide you through every step of the bankruptcy process. Start with an affordable $100 consultation.