THE ISAK LAW FIRM

Chapter 13 is used by debtors with a regular source of income who agree to pay back a portion or all of their debts through a repayment plan which lasts between 3 to 5 years. 

You can file for Chapter 13 Bankruptcy protection if your unsecured debts are less than $360,475 and your secured debts are less than $1,081,400. 

One of the most significant benefits of a Chapter 13 filing is that it can stop foreclosure proceedings and gives the debtor the opportunity to cure delinquent mortgage or car payments over time. Another significant benefit is that the debtor can reschedule other secured debts and pay them over the life of the Chapter 13 plan. However, it is very important to keep up with the payments under the plan. We will draft a payment plan that fits your needs and your budget. This payment plan must be approved by the court and must provide for payments of fixed amounts to the trustee on a regular basis, typically biweekly or monthly.

Once your petition is filed with the court, an Automatic Stay comes into effect which effectively stops any collection proceedings against you. A trustee will be appointed to your case. The trustee will evaluate your case, will collect payments from you, and will distribute the payments to the creditors.

You should consider filing a chapter 13 plan if you own your home and are in danger of losing it, if you are behind on debt payments but can catch up if given some time, or if you have assets which are not exempt, but you can afford to pay creditors over time.