Chapter 13 Bankruptcy

Dedicated Representation for Your Case

Chapter 13 bankruptcy is a form of reorganization for individuals. Chapter 13 allows you to set up a plan to pay some or all of your unsecured debts, while keeping your assets. If you are behind on your mortgage payments, or are already in foreclosure, you can catch up the past due payments over the term of the Chapter 13 plan. You can also catch up or restructure the payments on other secured debts, like car loans.

Chapter 13 is also for people who have the ability to pay a portion – or even all – of their debts, but who simply can’t afford the minimum payments required by their creditors. Some debts which can’t be discharged in Chapter 7 may be dischargeable in a Chapter 13, or the debts can be paid over the plan term. Meanwhile, the creditors are stopped from taking collection action by the automatic stay which goes into effect when a bankruptcy case is filed.

Filing a Chapter 13 case stops most creditors from taking action to collect money from you directly. Instead, creditors file claims with the bankruptcy court. You make payments to the Chapter 13 trustee, and the trustee pays your creditors based on the terms of your plan.

You can get detailed information about Chapter 13 from the Judicial Conference of the United States on the US Courts website here. Keep in mind that whether Chapter 13 is a good choice for you depends on your financial circumstances.

Call the Law Office of Sharon T. Sperling to schedule a FREE initial consultation so I can help you make an informed decision.