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Chapter 13 Bankruptcy

Chapter 13 bankruptcy is a repayment plan where you consolidate your debts and make a payment on your debt over a three to five year period. While in a Chapter 13 bankruptcy debt repayment plan, the creditors cannot collect from you, and the creditors are required by a Federal Court order to adhere to the terms of the plan. Your Philadelphia bankruptcy lawyer will help you figure out if you qualify for a repayment plan, and help you to pay the least amount required.

The payment plan looks at what you can afford over the three to five year period. After making payments within the plan, your remaining unsecured debts (such as credit cards and medicals) are discharged, and you continue to pay your mortgage, car loans and other secured debts that survive the bankruptcy.

Chapter 13 bankruptcy offers two major benefits over Chapter 7 bankruptcy. 1) Any late payments or “arrearages” can be made up over the repayment periods. 2) Second mortgage or home equity lines of credit (HELOC) may be “stripped,” potentially eliminating your second mortgage or HELOC. This Chapter can be useful to people who are facing foreclosure, have property they want to keep or for those who need bankruptcy protection, but do not qualify under Chapter 7 bankruptcy.

One very important thing to remember about Chapter 13 bankruptcy is that you must be working or have a consistent source of income for your repayment plan to be approved by the court. Your Philadelphia bankruptcy lawyer will help guide you through the process of filing a Chapter 13 bankruptcy in Philadelphia or the surrounding Delaware Valley that provides you the maximum benefit and relief from creditors.

For more information about Chapter 13 Bankruptcy, make sure to visit:

  • Bankruptcy FAQ
  • Bankruptcy Terms
  • Bankruptcy Myths
  • Bankruptcy DO’s & DON’Ts
  • Bankruptcy Resources
  • Arjont Group Law Office of Roger Traversa is designated by Congress as a debt relief agency. Among other things, we help people file for relief under the Bankruptcy Code. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult a Philadelphia bankruptcy attorney for individual advice regarding your own situation.