Chapter 13 Bankruptcy

Chapter 13 bankruptcy is known as reorganization bankruptcy and allows you to pay off your debts over a number of years. Is it the right option for you? We explain Chapter 13 in detail, how it works and how it can help you, plus how Westgate Law will help you after you’ve filed.”

Chapter 13 Bankruptcy. Chapter 13 Bankruptcy is known as a reorganization bankruptcy. It is usually filed by individuals who want to pay off their debts over a period of three to five years; need to catch up on delinquent accounts (like mortgage arrearages or delinquent car payments); or make too much money after reasonable and necessary expenses to qualify for Chapter 13 bankruptcy.

When we file your case, the court assigns a trustee to your case.  You will make a monthly payment to the trustee, called the Chapter 13 plan payment. The trustee will then distribute this payment to your creditors.

Typically, only those individuals who have consistent monthly income are likely to complete the three to five year commitment period. You will have to live on a tight budget over the Chapter 13 repayment period.

Self-employed individuals can file Chapter 13 bankruptcy, but must work closely with our attorneys and maintain regular contact. Since monthly income typically fluctuates, your Chapter 13 plan payment may need to monitored and adjusted.

Chapter 13 bankruptcy can help you save your house, your apartment and your car. We can freeze foreclosure proceedings and lawsuits, stop eviction and car repossessions by helping you file chapter 13 bankruptcy. You can cure defaults over time and pay off a portion of your debts in a chapter 13 wage earner repayment plan.

Chapter 13 cases can be difficult because every disposable dollar, after reasonable expenses, must be paid into your plan. You will not have much, if any, room to deal with a lot of everyday events.  Auto and home repairs; time off from work and important life events can make your monthly payment difficult. We will have to work together to make sure you are staying on top of your payment and continuing with your plan.