What is a Chapter 13?

Chapter 13 is a payback Plan, where the applicant can pay back mortgage arrears, car loans and certain taxes while being protected from foreclosure and repossession. The Chapter 13 applicant pays a certain amount monthly to a Chapter 13 Trustee, who divides the payments between creditors according to class. The monthly payment amount is determined by figuring income vs. allowable expenses, and should be affordable for the applicant every month.

Why would I file a Chapter 13?

If you have fallen behind on house payments and are in danger of losing your home to foreclosure, Chapter 13 gives you an opportunity to make up those missed payments over time. Also, non-dischargeable debt, such as child support or certain taxes, can be repaid with no interest. Car loans can also be paid through a Chapter 13, and in some cases where the vehicle is worth less than what is owed, the car can be paid off by simply paying only the value of the car. Chapter 13 is also a useful way to gain bankruptcy protection for those ineligible to file a Chapter 7 because of higher income.

What debts must I pay?

Any past-due child support must be paid in a Chapter 13 plan, and paying back certain tax liabilities is also mandatory. Also, to save a house from foreclosure, you must repay all missed mortgage payments. Car payments may be made through the Plan. Other debts, such as unsecured credit cards, medical bills, and certain judgments, are paid back as the applicant can afford, oftentimes meaning that they are not paid at all. If payments are made according to the plan, these unsecured debts will be discharged, similar to a Chapter 7 "Fresh Start" for cents on the dollar

Will a Chapter 13 save my house from foreclosure?

Filing a Chapter 13 Plan is an excellent way to save your house from foreclosure, especially if there was a temporary reason for the default, such as an illness, divorce, job loss, death in the family, downsizing, etc. If income has stabilized, a Chapter 13 Plan is often the best way to pay back arrears on your home.

How long does it take?

A typical Chapter 13 plan lasts from 36 to 60 months, depending on the individual's income, and amount of debt to be reorganized.

Do I qualify?

In order to be eligible to get relief under Chapter 13 you must have a regular and steady income. Wage-earners, self-employed business owners, and even retirees with steady pensions will qualify for Chapter 13.

How much does it cost?

The initial consultation with Mark Atchley is completely free. You are under no obligation to pay any fees or to continue any further. This is an excellent opportunity to learn how a Bankruptcy might help you in your particular situation. During your initial consultation with Mark Atchley, he will advise regarding the fees involved if you decide to continue.