Chapter 13 bankruptcy lawyer: how a plan works
Chapter 13 is a court-supervised repayment plan that lasts three to five years. It stops foreclosure, repossession and collection the day it is filed and lets you catch up on secured debts while keeping your property. It fits people with steady income who have something to protect.
Chapter 13 is a court-supervised repayment plan of three to five years. It is built for people with steady income who need to protect a house, a vehicle, or other property, and who want to catch up on missed payments without the lender taking anything.
Free case review Call 24/7 (928) 985-8888What can Chapter 13 bankruptcy do for me?
- Stop a foreclosure sale and cure mortgage arrears over the life of the plan.
- Stop or reverse a vehicle repossession.
- Reduce a car loan to the vehicle's value or lower the interest rate in many cases (cramdown).
- Strip a wholly unsecured second mortgage or HELOC.
- Pay priority taxes over time without new penalties.
How is a Chapter 13 plan payment calculated?
The payment is driven by your disposable income, the value of non-exempt property, and what must be paid in full, such as arrears and priority debt. General unsecured creditors often receive a small percentage, and the balance is discharged when the plan is complete.
Should I file Chapter 13 or Chapter 7?
If you are behind on a house or car you want to keep, earn above the median, or have property Chapter 7 would not protect, Chapter 13 is usually the better tool. We run both options and show you the numbers side by side.
What else do people ask the Dune Lawyer?
How long is a Chapter 13 plan?
Three years if you are below the state median income, five years if above, though you can propose a longer plan up to five years either way.
Can I keep my house in Chapter 13?
Yes. That is one of the main reasons people file it. You keep making regular payments and cure the arrears through the plan.
What if my income changes during the plan?
Plans can be modified, and hardship discharges are available in some situations.
Which related guides should I read next?
How do I talk to the Dune Lawyer today?
Free review. Injury cases: no fee until we win. Bankruptcy: flat, transparent fees.