Chapter 13 Bankruptcy
Reorganization
Representing individuals, couples and small businesses in the filing of Chapter 13 Bankruptcy for over 40 years.
Overview of Chapter 13 Bankruptcy Process
Chapter 13 bankruptcy, often called a “reorganization bankruptcy,” allows individuals with regular income to repay all or a portion of their debts over time while protecting their assets. It is commonly used by debtors who wish to save their home, catch up on past-due payments, protect an unexempt asset, or who do not qualify for Ch. 7.
How Chapter 13 Works & Eligibility Requirements
In a Chapter 13 case, the debtor proposes a repayment plan lasting three to five years. The plan consolidates eligible debts into one monthly payment made to a Chapter 13 trustee, who then distributes payments to creditors according to the plan and the Bankruptcy Code. So long as plan payments are made, creditors may not pursue collection efforts.
Chapter 13 is available to individuals with regular income who fall within the statutory debt limits. Unlike Chapter 7, there is no means test disqualification, making Chapter 13 an option for those who earn too much to qualify for Chapter 7.
Who is it for?
- Individuals or married couples
- Small businesses impacted by financial struggles
Debts addressed in Chapter 13
- Catch up on past-due mortgage or car payments
- Pay tax debts over time
- Address domestic support arrears
- Reduce or restructure certain secured debts
- Pay a portion of unsecured debts, such as credit cards and medical bills
At the completion of the plan, any remaining eligible unsecured debt may be discharged.
Timeline
A Chapter 13 case typically lasts three to five years, depending on income and plan requirements. Upon successful completion of the plan, the debtor receives a discharge and emerges current on their obligation.
Benefits of Filing Chapter 13
- Immediate protection from foreclosure, repossession, garnishment, and lawsuits through the automatic stay
- Ability to cure mortgage arrears and keep your home
- Structured repayment based on income and reasonable expenses
- Potential to reduce the balance on certain secured debts
- Protection for co-signers in many cases
Why Mezher Law for These Cases
Chapter 13 bankruptcy is not just a filing—it is a long-term financial plan that requires careful strategy. We take the time to analyze your income, expenses, assets, and goals to design a repayment plan that protects what matters most—whether that is your home, your vehicle, or your ability to maintain financial stability over the life of the case. Choosing the right law firm is critical to the success of your case.
Q&A
A: Your attorney represents during the entire pendency of the Ch. 13 so if circumstances change there may be other options available to reduce the plan payment or convert the case to a Ch. 7
A: Yes, it’s possible but certain motions and approval by the bankruptcy court is required.
A: Your credit score may drop upon the initial filing but will improve over the course of the bankruptcy case.
The Process Is Easy
Step 1
Schedule a consultation with one of our experienced lawyers
Step 2
Provide documentation to prepare the petition
Step 3
Attorney prepares petition and plan
Step 4
Client and Attorney have a meeting and sign the petition
Step 5
Petition is filed in Federal Court
Step 6
First payment is due to the Trustee within 30 days of filing of the case
Step 7
Client and Attorney attend the Meeting of Creditors
Step 8
Client makes regular monthly payments to the Ch. 13
Step 9
Client completes the applicable commitment period and Discharge Order issued by the Bankruptcy Court.
Ready to Start your claim?
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Contact us to learn more about how we can support you or your business.