Chapter 13 Bankruptcy

Chapter 13 allows individuals with regular income to reorganize their debts and repay some or all balances over three to five years. You submit a court‑approved repayment plan that must commit your disposable income to paying priority debts and arrears on secured loans. In return, you keep your property and catch up on mortgage or car payments while spreading other obligations out over time.

The plan length depends on your income: if your income is below the state median, you may propose a three‑year plan; above the median generally requires a five‑year plan. You can include tax debts, recent credit card charges and even mortgage arrears. Interest and penalties may stop accruing while you make regular payments through the Chapter 13 trustee.

Chapter 13 can stop a foreclosure, protect assets that might be sold in Chapter 7 and allow you to strip a second mortgage if the house is underwater. At the end of the plan, remaining unsecured balances are discharged. We can prepare a proposal tailored to your budget and goals and help you decide whether Chapter 13 offers advantages over other options.