Chapter 13 Bankruptcy

Tadross Law will help you file for Chapter 13 Bankruptcy in Philadelphia & Lansdale, PA

If you do not qualify for a Chapter 7, a Chapter 13 might be a valuable type of relief under the Bankruptcy Code for you. Chapter 13 Bankruptcy is a payment arrangement that allows you to pay back debts, including missed mortgage or auto loan payments, over time to help you save your home or car. Chapter 13 is a good alternative for people who do not qualify for Chapter 7 because their income is too high. However, it is not limited to high-income earners.

Chapter 13 Process:

The initial process is very similar to a Chapter 7, in that we would, on your behalf, submit the petition, schedules, and other documents detailing your financial situation to the Court. Unlike a Chapter 7, however, under a Chapter 13, we would also submit a plan to the Court outlining your repayment plan to your creditors, detailing the proposed length of repayment and amount of repayment. , how long it will take, and how much each creditor will get.

Your payment plan is based on your “disposable income,” which is the income remaining after paying off certain allowable expenses (E.g., housing, utilities, etc.). In order to take advantage of a Chapter 13, you will be required to show that you have sufficient regular income to pay back at least a portion of your debt.

Chapter 13 Benefits

Chapter 13 has several important advantages over Chapter 7 for those who qualify, including the following:

  • Allows you to keep your home by providing the breathing room you need to catch up on your payments
  • Eliminate Second Mortgage Liens.
  • Reduces payments on qualifying vehicles and other secured debts, making them affordable
  • Provides time to catch up on child support and unpaid taxes
  • Enables you to repay a portion of your credit card and other unsecured debt
  • Make payments directly to your bankruptcy trustee, who then pays your creditors, so you no longer need to deal with creditors directly.
  • Protect Co-Signers From Collections, without requiring them to file a bankruptcy petition.

Get Help Dealing with Chapter 13

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