A Chapter 13 bankruptcy allows you the opportunity to pay off your debts through a court-approved payment plan over a period of three to five years. The benefit received from filing a Chapter 13 bankruptcy petition is that you can generally keep all of your nonexempt property (typically a home and car). One of the additional benefits of a Chapter 13 bankruptcy is that interest and late fees do not accrue while you are under the protection of Chapter 13 bankruptcy.

The most common reason that people choose to file for Chapter 13 bankruptcy protection is because they are behind on their mortgage payments.  Too often when someone gets behind, the mortgage company’s solution is for you to catch up by making mortgage payments that are virtually if not completely impossible.  Chapter 13 bankruptcy will stop a house foreclosure proceeding and give you the right to pay back the past due payments over a period of up to 60 months. As part of the payment plan, you will be required to pay back a percentage, or all, of your unsecured debt.  Most people only have to pay a portion of their credit card debt, but each case is different depending on your income.   Upon completion of the plan, you will then receive a discharge of debts that were included in the plan, and you will be able to keep your property.

The Chapter 13 bankruptcy, or wage earner bankruptcy, is designed for people who have a steady income and significant equity in their home, have filed for Chapter 7 bankruptcy within the past seven years, or have too much income to file for a Chapter 7 bankruptcy. A Chapter 13 bankruptcy filing allows you to keep all your assets and stop home foreclosures while you reorganize your debt and work out a payment plan with a bankruptcy trustee.

Let us help you through these difficult times.

Filing a Chapter 13 bankruptcy could be a viable option for you if you are experiencing financial difficulties and are concerned about losing your home, car or other valuable property.

Call us at 214-749-7777 to arrange for your free 30-minute initial consultation with Lynn Carroll, Attorney.  We are located just east of the downtown area, and free parking is available.