Chapter 13 Bankruptcy

Conquer Your Debts

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What is Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy allows you to discharge your debt by making payments over a period of 3–5 years. Commonly known as a reorganization, you take your income, subtract your reasonable living expenses, and the difference between those two numbers is a minimum of what you’re required to pay over the life of your Chapter 13 bankruptcy case. While most would prefer to file a Chapter 7 bankruptcy, which typically takes a few months, there are situations where a person’s only bankruptcy option is a Chapter 13, or where a Chapter 13 makes more sense.

  • Who is Chapter 13 For?
  • If you make too much money to qualify for a Chapter 7 bankruptcy.
  • If you have unprotected property that would be forcibly sold in a Chapter 7 bankruptcy.
  • If you are trying to halt a foreclosure and pay the mortgage arrearage over a period of time.
  • If you want to pay back at least some of your debt, but the interest makes it an impossible task.

What Are the Advantages?

A Chapter 13 Bankruptcy allows you to get your budget under control and contribute what you’re able to your debts. When you file, the creditors are legally prohibited from attempting to collect against you by calling, emailing, suing, or garnishing your wages. Once you complete your plan, you permanently prevent them from collecting against you. Chapter 13 allows you to look 3–5 years into the future and know that as long as you abide by the terms of your plan, you’ll be done.

Process / Next Steps

The next step is to schedule a meeting with our attorney, Chris Williams. He reviews your situation to determine:

  1. Whether you qualify for bankruptcy.
  2. Whether bankruptcy makes sense.
  3. What the cost for bankruptcy would be.

Our free consultations are scheduled for up to an hour, but typically average between 20 and 40 minutes depending on the complexity of your matter.

If you’re eligible and it makes sense, then you can retain with our office with a deposit. It’s helpful to have your ID and social security card at your first meeting, although it’s not required.

Frequently Asked Questions

What does Chapter 13 Bankruptcy cost?

As of 2025, the costs are as follows: 1) the court filing fee is $313, 2) our office requires a credit report of $37 for an individual, or $60 for a married couple, and 3) attorney’s fees. Our attorney’s fees vary depending on the complexity of a matter. Less complex matters are more affordable than complex matters that include things like businesses, substantial property, or active divorces. Most of the attorney’s fees are paid through the payments you make to the Chapter 13 Trustee.

How does a Chapter 13 Bankruptcy affect my credit?

We cannot accurately predict credit, and our office cannot guarantee your credit standing after filing. That being said, when you file, your open accounts are updated to be closed accounts, which is the first step of rebuilding your credit. A bankruptcy is added to your credit report. Once you get your discharge, the discharge is then reported on your credit report for seven years.

Will the Trustee sell my house, my car, or my other personal property?

The Chapter 13 Trustee does not forcibly sell property. If you have unprotected equity in property, then your Chapter 13 plan must propose to pay at least that amount into your case. For example, if you own a sports car valued at $50,000 and we can protect $10,000, then it has $40,000 of unprotected equity. In that example, your creditors must receive at least $40,000 through your plan.

What will my Chapter 13 monthly plan payment be?

Your monthly plan payment will be based on your income minus reasonable living expenses. There are expense standards set by the IRS we are required to abide by, for example, with food and household supplies. Otherwise, we can claim your rent, utilities, gas and vehicle expenses, childcare expenses, insurance, etc. Our experienced bankruptcy attorney works to minimize your payment and maximize the benefit of your filing.