Bankruptcy - Chapter 13

When someone files for bankruptcy under Chapter 13 of the Bankruptcy Code, their aim is to have the opportunity to repay all or some of the debt in their name with better terms. Chapter 13 allows individuals who have a steady income to create a plan and restructure their debt to pay off their creditors.


Unlike Chapter 7 Bankruptcy filing which involves the liquidation of debt, Chapter 13 allows the debtor to use whatever income they have in the future to pay off their debt. Chapter 13 bankruptcy also provides an avenue to repay back taxes and mortgage payments and in some scenarios, completely remove second or third mortgages.

Frequently Asked Questions


What are the advantages of a Chapter 13 Bankruptcy filing?

One of the most important features of Chapter 13 Bankruptcy is you can save your home. By filing Chapter 13 you can work to stop the foreclosure that is already underway and make up the missed payments through the court approved repayment plan. A Chapter 7 Bankruptcy does not offer this feature. If you file Chapter 7 and want to keep your home you must pay the arrearages or obtain a suitable loan modification on all of the mortgages.


How does the bankruptcy proceeding begin?

There is a considerable amount of preplanning involved in your bankruptcy case. You will likely spend a few hours with case analysis and your attorney discussing your situation prior to the cases filing. The actual case starts when you, the debtor file a petition with the bankruptcy court.


Who can file for Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is meant for individuals who have an income and need assistance from the court to repay parts of their debt to get a fresh financial start. Chapter 13 is also an option for debtors who are late on mortgage payments for their home.


To learn more about your debt relief options contact the Lepera + Associates, PC to schedule a free consultation and case evaluation.