Chapter 13 is a bankruptcy option that's designed to help manage key debts. One of the key features of Chapter 13 is that it provides strong protections for assets, which may help you keep more property and avoid long-term problems with creditors, and many people turn to Chapter 13 to help them avoid foreclosure.
Unlike Chapter 7 bankruptcy, Chapter 13 does not completely erase financial obligations. Instead, it helps you reorganize these debts into a reasonable payment plan. A payment plan under Chapter 13 lasts between 36 and 60 months.
Another key advantage to a Chapter 13 bankruptcy claim is that if the court accepts an individual's case, the debts are consolidated at their current value, and they are repaid without interest accruing, which can save the filer hundreds or even thousands of dollars.
Individuals should also keep in mind that, although bankruptcy is a protection governed by federal law, bankruptcy laws are different depending on the state. A local bankruptcy lawyer can help you determine how filing Chapter 13 could help your situation.
While there are restrictions on how often a person can file for bankruptcy, an individual may file multiple times in his or her life. The laws dictate that a person must wait at least two years after finishing a Chapter 13 bankruptcy plan before a second can be filed.
Although people are free to file for Chapter 13 as many times as necessary, federal law will prevent the courts from completing the process until the waiting period is over.
Also, filing a bankruptcy claim can cause an individual’s credit score to drop. It generally takes up to ten years for each bankruptcy claim to be dropped from a person's credit report. However, individuals who carefully maintain the Chapter 13 payment schedule designed by the bankruptcy court can slowly rebuild credit over time.
Bankruptcy laws vary by state. So if you would like more detailed information on your state's laws, connect with a local attorney today. Just fill out the form below to connect with a lawyer near you for a free initial consultation.
PAID ATTORNEY ADVERTISEMENT: THIS WEB SITE IS A GROUP ADVERTISEMENT AND THE PARTICIPATING ATTORNEYS ARE INCLUDED BECAUSE THEY PAY AN ADVERTISING FEE. It is not a lawyer referral service or prepaid legal services plan. Total Bankruptcy is not a law firm. Your request for contact will be forwarded to the local lawyer who has paid to advertise in the ZIP code you provide. Total Bankruptcy does not endorse or recommend any lawyer or law firm who participates in the network nor does it analyze a person's legal situation when determining which participating lawyers receive a person's inquiry. It does not make any representation and has not made any judgment as to the qualifications, expertise or credentials of any participating lawyer. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers. The information contained herein is not legal advice. Any information you submit to Total Bankruptcy does not create an attorney-client relationship and may not be protected by attorney-client privilege. Do not use the form to submit confidential, time-sensitive, or privileged information. All photos are of models and do not depict clients. All case evaluations are performed by participating attorneys. To see the attorney in your area who is responsible for this advertisement, please click here, or call 866-200-8052.
FLORIDA ONLY: Total Bankruptcy is considered a lawyer referral service in the state of Florida under the Florida Rules of Professional Conduct. By all other standards, Total Bankruptcy is a group advertisement and not a lawyer referral service.
If you live in Mississippi, Missouri, New York or Wyoming, please click here for additional information.
By an Act of Congress and the President of the United States, we are a federal Debt Relief Agency. Attorneys and/or law firms promoted through this Web site are also federally designated Debt Relief Agencies. They help people file for relief under the U.S. Bankruptcy Code. Disclosures Required Under the U.S. Bankruptcy Code.