Chapter 13 Bankruptcy – Full Details

• Ultimately, Chapter 13 functions similarly to a consolidation loan. The individual sends a single monthly payment to a designated Chapter 13 trustee, who then manages the distribution of those funds to the various creditors. Under this legal protection, individuals are shielded from direct contact with their creditors. To be eligible, any individual—including those who are self-employed or running unincorporated businesses—must meet specific debt thresholds.
• As of the filing date, unsecured debts must be below $526,700 and secured debts must be under $1,580,125, per 11 U.S.C. § 109(e). Chapter 13 bankruptcy allows individuals with regular income to keep their property while repaying debt over a three to five-year period. It is often the preferred choice for those facing foreclosure on their primary residence or repossession of vehicles.
• Additional eligibility criteria, such as the requirement for a workable plan that utilizes all disposable income, will be thoroughly reviewed during your initial consultation. Our office works diligently to craft a plan that addresses arrears on mortgages or vehicles while you maintain regular post-filing payments. Whether your eligibility results in a 100% repayment plan to unsecured creditors or a 0% plan, we ensure it is feasible and based on your specific financial profile and disposable income.