Chapter 13 Bankruptcy

If you have fallen behind on your debts, filing for Chapter 13 bankruptcy may help. Chapter 13 allows you to reschedule your debts, pay what you owe over a certain period of time and eliminate some debt altogether. By filing early and following the court guidelines, you’ll be able to avoid foreclosure or repossession. An attorney can explain the various requirements and eligibility conditions involved.

How Does the Filing Process Work?

Chapter 13 is meant for individuals and unincorporated, small businesses. In order to file, your unsecured debt cannot exceed $336,900, and your secured debt cannot exceed $1,010,650. When filing, you must disclose every debt and asset you have as well as proof of regular income. Your petition to the bankruptcy court must include a plan of repayment on some or all of your debts. The repayment period will be three to five years.

What Happens After a Petition is Filed?

A trustee appointed to your case will hold a meeting of creditors in order to resolve any issues regarding your plan. Within 45 days of the meeting, a judge will hold a hearing and either confirm or dismiss the plan. Your case may be dismissed if you fail to supply the court with the proper paperwork or you don’t meet certain financial obligations after filing.

How is the Repayment Plan Executed?

Once your Chapter 13 plan is approved, you must regularly make payments to your trustee. Creditors cannot take action against you if you stick to your plan. Because domestic support and tax obligations are priority debts,

they must be paid in full. You don’t have to pay unsecured debts in full as long as you are using any disposable income to repay them.

If you cannot make payments, your plan may be dismissed. This is why it’s important to speak with a knowledgeable lawyer before creating a repayment schedule. With the right Chapter 13 plan, you can stop paying high interest, catch up on delinquencies and keep your property. Contacting a bankruptcy attorney today could put you back on track for tomorrow.

Ask a question about Chapter 13 Bankruptcy

Or give us a call at 214.540.4981 to schedule an appointment. We're here to help!

All of the information you provide will be kept strictly confidential. Email sent via this website is not protected by the attorney-client privilege and does not create an attorney-client relationship.

Meet Attorney Andy Oostdyk

Andy is originally from Wisconsin, growing up in the Madison area and went to Law School in Dallas at Southern Methodist University’s Dedman School of Law. After earning his J.D. Andy enjoys spending time with his wife and 3 boys, helping coach his sons’ soccer and baseball teams, and is an active member of the Knights of Columbus, Council 799.

View Andy's Biography View all Attorneys