About Chapter 13

Chapter 13 bankruptcy is commonly called “reorganization” because we are creating a 3 to 5 year plan to restore your financial health. Someone in Chapter 13 will make regular monthly payments to a trustee to treat all of their creditors. In many cases, this payment is less than the amount owed. Chapter 13 bankruptcy is a good option for individuals and families that may not qualify for Chapter 7 bankruptcy because they exceed median income limits set by the bankruptcy statute.

Chapter 13 bankruptcy will also do the following:

Stop foreclosure
Stop vehicle repossession
Allow time to catch up on missed mortgage payments
Stop IRS and DOR levies
Pay back income taxes owed to the IRS or Department of Revenue
Remove second mortgages and home equity lines in certain circumstances
Modify car loans in certain circumstances
Strip judicial liens from real estate

Stop Foreclosure

Chapter 13 bankruptcy stops foreclosure the moment a case is filed. It allows you to resume making monthly mortgage payments to the lender while catching up on missed payments in fixed monthly payments. As long as you meet your obligations under the plan, your creditors cannot foreclose on your home.