Chapter 13 is sometimes referred to as “personal reorganization” bankruptcy, filing under chapter 13 involves making payments of all or some of your debts to creditors over time. A usual chapter 13 plan last from 3 to 5 years, and allows you to keep all or most of your property. A chapter 13 may be necessary if you are dealing with any of the following issues:
- Mortgage arrears
- Car payment delinquencies
- Past due child support
- Past due spousal support
- Tax Collections
- Criminal fines
- Embezzlement or fraud
- Civil Judgment for intentional conduct (i.e. assault)
- Reducing interest or payments to an affordable level
- Want to keep valuable property
Depending on your income and the value of your property you may be required to pay towards some or all of your unsecured debts. However, at the end of your Chapter 13 plan, most unsecured debts will be discharged.
If you are considering filing Chapter 13 bankruptcy, please contact our office for a free 30 minute initial legal consultation with an attorney.