Chapter 13 Bankruptcy & You
Filing Chapter 13 Bankruptcy to Attain the Financial Breathing Room You Need
At Chapter13.Me, we want to help you take the guess work out of deciding if filing Chapter 13 bankruptcy may help you stop foreclosure, vehicle repossession or some other collection action on your secured debts.
In addition to providing you with the following information on Chapter 13 bankruptcy, we can quickly connect you with a local bankruptcy lawyer who can explain what filing Chapter 13 may mean to you.
All you have to do is fill out our free bankruptcy case evaluation form or call 1 (888) 632-0504, and we’ll connect you with a nearby Chapter 13 bankruptcy lawyer from our nationwide network of sponsoring bankruptcy attorneys.
What Is Chapter 13 Bankruptcy & Why Should You Care?
Chapter 13 bankruptcy is often described as a reorganization of your secured debts, which refer to debts that are tied to collateral, like your mortgage loan debts are tied to your home and your auto loans are tied to your car.
Let’s say you’ve fallen behind on these types of debts and now face the possibility of losing your home to foreclosure or your car to repossession. By filing Chapter 13 bankruptcy, you may be able to stop foreclosure and repossession in exchange for agreeing to gradually pay back these debts over time.
More specifically, Chapter 13 bankruptcy works to provide you the breathing room you need from an impending foreclosure or vehicle repossession by stopping these actions through bankruptcy’s automatic stay in exchange for you agreeing to repay your secured debts throughout a specified repayment period.
Generally speaking, Chapter 13 repayment plans last anywhere from 3-5 years, thus allowing you the time and peace of mind you need to catch up on your secured debts while getting to keep items like your home and car that are most important to you.
Could Chapter 13 Bankruptcy Offer You Similar Relief to What Others Have Experienced?
If you think you’re alone in worrying about losing your home to foreclosure or your car to repossession, think again and take solace in the fact that many people have recently filed Chapter 13 bankruptcy to attain some breathing room from their debts.
Based on numerical data available from the Administrative Office of the U.S. Courts, Chapter 7, 11, and 12 bankruptcy filings fell in 2007, while Chapter 13 filings rose by 14%. Specifically, 272,937 people filed for Chapter 13 bankruptcy in 2006 while 310,802 people filed Chapter 13 bankruptcy in 2007.
In a separate report dated June 3, 2008, the Administrative Office of Courts reported that Chapter 13 filings rose to 334,551, from the 276,649 bankruptcies filed in the 12-month period ending March 31, 2007. That is a 21% jump overall.
Like many of the individuals who filed for Chapter 13 protection, you may feel the pressure of the current economic downturn. By filing Chapter 13 bankruptcy, you may take control of your current debts and start on a path to financial renewal.
When Chapter 13 Bankruptcy May Make Sense to You
If you are having issues making ends meet and paying your secured debts, you may be a good candidate for a Chapter 13 petition. While the following characteristics generally describe Chapter 13 filers, remember that it is typically a good idea to speak with a local Chapter 13 bankruptcy lawyer in more detail about how this personal bankruptcy protection may help you address your current financial situation.
Chapter 13 bankruptcy may make sense to you if you have a regular, steady income and the ability to keep up with your basic living expenses but cannot keep up with the scheduled payments for your secured debts.
In order to file Chapter 13 bankruptcy, you have to prove to the court that you can afford to meet all your payment obligations under the repayment plan that you and your bankruptcy lawyer will work out with the court.
The Highs and Lows of Chapter 13 – Do You Qualify for This Personal Bankruptcy?
Qualifying for Chapter 13 can be a tricky numbers game. If your income is too low, the court may not approve your case for filing. If your debt is too high, then the court may still deny your request to file for Chapter 13.
To file for Chapter 13 bankruptcy, your secured debts cannot be over $1,081,400 and your unsecured debts cannot be over $360,475.
As mentioned above, homes and cars are examples of secured debts. On the other hand, credit cards and medical bills are examples of unsecured debts. A secured debt gives the creditor the right to take your property, while an unsecured debt does not give the creditor the right to take property. To help you figure out where you fall along the Chapter 13 numbers, it may make sense to have a bankruptcy attorney assist you.
If you are approved for a Chapter 13 petition, you must file and complete a repayment plan. When the plan is completed within 3-5 years, you will be eligible for a discharge. By this time, you will have completed your Credit Counseling briefing before filing bankruptcy and the Debtor Education course after filing but before receiving your discharge.
Find a Bankruptcy Attorney to Help You Examine Chapter 13’s Exciting Possibilities
Need more information about Chapter 13 bankruptcy? Just complete our free bankruptcy case evaluation form or call 1 (888) 632-0504. We’ll use the information to connect you with a bankruptcy attorney near you.
Show that you are ready to take control of your debt by taking a few minutes to complete our quick and easy form and letting us connect you with a Chapter 13 bankruptcy lawyer in your area.
The above summary is not legal advice. Laws may have changed since our last update. For the latest information on bankruptcy laws, speak to a local bankruptcy lawyer in your state.