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Chapter 13 Bankruptcy

Unlike a Chapter 7 bankruptcy, Chapter 13 allows those with income to repay all or part of their debts through a payment plan. This type of bankruptcy does not require liquidation of assets, making it an attractive option for people who want to keep their home, car, or other assets while applying all disposable income to debt resolution. Typically, a Chapter 13 bankruptcy payment plan will range from 3-5 years and is overseen by a court-appointed trustee who will collect and distribute your payments.

We highly recommend working with a bankruptcy law firm when filing for Chapter 13 bankruptcy. At Rich Law, we are very experienced with the U.S. Bankruptcy Code and can help determine the most affordable bankruptcy option for you.

What Is a Chapter 13 Bankruptcy?

Chapter 13 is a way to eliminate certain debts through a reorganization plan without having to liquidate your assets. A bankruptcy attorney can help you propose a repayment plan that works for you and your unique situation.

Types of debt that can usually be paid off with a Chapter 13 bankruptcy filing include:

  • Credit card debt
  • Medical bills
  • Personal loans
  • Back taxes
  • Mortgage arrears
  • Car loans

If you’ve fallen behind on loan payments, a Chapter 13 could be a viable option to make repayment more manageable while still keeping your property and assets.

How Do I Qualify For Chapter 13 Bankruptcy?

To qualify for a Chapter 13 bankruptcy, you must show that you have the means to pay down debts over time, whether through additional income, proceeds from a property sale, Social Security payments, pension income, or a variety of other sources. A bankruptcy attorney can review the acceptable forms of payment with you. Businesses are not eligible for this type of bankruptcy.

What To Expect After Filing For Chapter 13 Bankruptcy

When filing for Chapter 13 bankruptcy, you must present the Court with proof of income and a proposed payment plan for your debt. At Rich Law, we can help you gather the required documents for a court filing and propose a payment plan that is an affordable percentage of your general unsecured debt. Once your case is filed, the bankruptcy court will review the proposed bankruptcy payment plan, meet with your creditors, and then schedule a hearing. If it is accepted, you will then be responsible for paying back your debt to a court-appoint trustee who will distribute the payments to your creditors. Once the repayments are completed, the Chapter 13 bankruptcy case will be discharged, although the bankruptcy filing will remain on your credit report for seven years.

If you are struggling with large amounts of debt, a Chapter 13 bankruptcy can give you breathing room to restructure your payments and extend due dates. At Rich Law, we understand how stressful it can be to fall behind on payments when you have overwhelming debt. Give us a call today to schedule a free bankruptcy consultation. We are happy to review your case and provide you with the bankruptcy information you need to determine the best route for you.


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RichLaw proudly serves the greater Richmond region with two convenient offices located in Henrico and Chesterfield. If you are considering filing for bankruptcy, looking for bankruptcy alternatives, or just struggling financially, contact us today at (804) 464-3066.