Chapter 13 Bankruptcy Information

Chapter 13 bankruptcy may be a good option for debt relief for those who have enough money to pay their expenses and want to maintain equity in their home, but are unable to keep up with regular debt payments. This is commonly used for homeowners who are looking to restructure their expenses. Chapter 13 does not wipe out all of the debt, like Chapter 7 does, but instead it reorganizes your debt and allows for most of your non-mortgage debt payments to be lowered so you can afford your current home payments, while letting you slowly catch up on the delinquent payments.

Chapter 13 allows you to set your own rate and set up a repayment schedule that is affordable for you. Most payment plans will allow you to have 3-5 years to catch up on the payments. Another benefit of Chapter 13 is the automatic stay, which is a court order that provides you with protection against creditors as soon as you file. Once you have filed, you will not need to worry about dealing with any debt collectors, lawsuits, wage garnishments or foreclosure.

Filing for Chapter 13 bankruptcy may be the right solution for you, but it is not a solution for everyone with debt. Reach out to the proficient attorneys at the Consumer Advocacy Center to find out more about Chapter 7 and also see what your options are for dealing with debt.