Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is a repayment plan lasting three to five years, depending on your income level. You pay off your debts in full or in part, based on your ability to pay. At the end of the case, all the balances on your debts are discharged, even if they have been only been partially paid off, except your mortgage, student loans, child support, and some other exceptions we can tell you about. Most Chapter 13 cases are partial payment cases. Normally, you continue paying your house and car payments; the rest of your debts are put into the Chapter 13 plan. This means you do not normally lose anything you own.
You should consider filing Chapter 13 if:
- You are behind on house or car payments, and need time to catch up;
- You are behind on other debt payments, and need time to catch up; or
- You have valuable property you would lose in a Chapter 7 and instead can make payments to you creditors over time.
Call my office at (952) 831-1995 to find out how Chapter 13 would work for your situation.