Chapter 13

Carlotta

Chapter 13 Paralegal

A Chapter 13 bankruptcy allows wage earners to reorganize and repay their debts through a Chapter 13 debt repayment plan over three to five years. Chapter 13 is intended for people with a steady source of income that is high enough to cover basic living expenses plus enough extra to pay into a bankruptcy court repayment plan.

Filing a Chapter 13 bankruptcy automatically stops home foreclosures, vehicle repossessions, wage garnishments, and other collection actions.

A Chapter 13 bankruptcy is commonly used to reorganize non-dischargeable debts that must be repaid such as home mortgages, equity lines of credit, child support, vehicle payments, taxes, student loans, and traffic tickets. It may help a person whose Washington State drivers license has been suspended or revoked get their licenses reinstated.

common reasons to choose chapter 13

A Chapter 13 bankruptcy may be a better choice if one or more of the following is true:

You are behind in a mortgage loan or car loan and want to make up on the missed payments over time so you can keep your house or your car;
Your income gives you the financial ability to pay a portion of your debts over time;
You owe taxes, child support, or fines;
You have a co-debtor or co-signer on a personal loan;
You have lots of property or other valuable assets that you want to keep;
Your drivers license has been suspended or revoked due to unpaid fines and you want to get your license reinstated;
You have already filed a Chapter 7 bankruptcy within the last eight years.

Disclaimer

These materials have been prepared by Jennie Patton, Attorney at Law, for informational purposes only and are not legal advice. Transmission of the information is not intended to create, and receipt does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act on this information without seeking counsel. The information contained on this web site is provided only as general information and may or may not reflect the most current legal developments. This information is not intended to constitute legal advice or to substitute for legal advice obtained from a duly licensed attorney.