Bankruptcy
What is Chapter 13 Bankruptcy?
Keep your home, your car, and your assets — while getting a structured path out of debt.
Chapter 13 Explained
Chapter 13 bankruptcy — often called the "wage earner's plan" — is designed for individuals with regular income who want to keep their assets while repaying some or all of their debts over a 3 to 5 year period. Unlike Chapter 7, Chapter 13 does not require liquidation of assets.
It's an especially powerful tool for homeowners who are behind on their mortgage. Chapter 13 can stop a foreclosure immediately and give you time to catch up on missed payments through your repayment plan — all while keeping your home.
Who is Chapter 13 Best For?
- ✓ Homeowners facing foreclosure who want to save their home
- ✓ Individuals with regular income who don't qualify for Chapter 7
- ✓ People with non-dischargeable debts (like certain taxes or student loans) they want to manage
- ✓ Those who have assets they want to protect that exceed Chapter 7 exemptions
- ✓ Individuals who have filed Chapter 7 within the past 8 years
How the Repayment Plan Works
Under Chapter 13, you propose a repayment plan to the court that lasts 3 to 5 years. During this time, you make monthly payments to a bankruptcy trustee, who distributes the funds to your creditors. At the end of the plan, any remaining eligible unsecured debts are discharged. Throughout the process, the automatic stay protects you from collection actions, lawsuits, and foreclosure.
Stop Foreclosure. Keep Your Home.
If you're behind on your mortgage, Chapter 13 may be your best option. Call us today at (321) 541-6845 to discuss your situation.
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