Chapter 13 Bankruptcy Help

Chapter 13 bankruptcy is a form of reorganization, in which you follow a payment plan to your creditors under the discretion of a bankruptcy court. It can be used only by individuals, often those who did not meet the requirements of a Chapter 7 filing.

In filing for Chapter 13, a bankruptcy court will consider your income, debt load, and other financial assets to determine your minimum payments. Depending on your circumstances and your debts, you will pay in full, partially pay, or not pay at all any given number of your individual debts. Any debts that are not paid through the plan most likely will be discharged.

If your income is considered too high for Chapter 7 filing, Chapter 13 may be your best option. In order to qualify, your income must be sufficient to pay off some of your debts, but not so high that you should be able to find means of repayment other than bankruptcy. Your unsecured debt load must be less than $307,675, while your secured debt load must be less than $922,975.

In order to file Chapter 13, you must first seek credit counseling from an approved organization. Upon completion, you will be given certification to file with a bankruptcy court to begin your case. The entire process generally takes about three to five years.