Chapter 13 Bankruptcy

Behind on mortgage payments? Keep Your Home and Get Rid of Your Debt

Filing for Chapter 13 bankruptcy under federal law is known as debt consolidation or a debt repayment plan. In Chapter 13 bankruptcy, an automatic stay is issued once paperwork is filed with the bankruptcy court. Creditors are barred from filing a lawsuit against you for money owed. All collection processes, including harassing phone calls, must stop.

Part of the chapter 13 bankruptcy paperwork filed with a court must contain a repayment plan. The court has the option of rejecting or approving this repayment plan. This plan must specifically outline how you will repay your creditors over a period of 36 to 60 months. Payments are often made one month after the court approves the chapter 13 paperwork.

Of course, your financial circumstances may change while you are in a chapter 13 bankruptcy. If you find that you can no longer afford your chapter 13 bankruptcy plan payment, an experienced chapter 13 bankruptcy lawyer can either modify your plan, or can convert your case to Chapter 7 and wipe out debts.

If you have a steady income but are afraid of losing your home, or you have other kinds of debt, such as student loan debt, that Chapter 7 doesn’t discharge, you might consider filing for Chapter 13 bankruptcy.