Bankruptcy > Chapter 13

Chapter 13

Chapter 13 Bankruptcy is envisioned as a way for an individual to pay off most debts over an extended period of time, usually three to five years. (Debt that cannot be included in a Chapter 13 filing can include support payments, tax debts, fines and student loans.)  In this circumstance, a court-approved Chapter 13 Plan specifies how creditors will be compensated for the debt they are owed.  Chapter 13 Bankruptcies can help individuals restructure payment plans on items such as mortgages, cars and furniture.  It’s also an advisable path for debtors with a large amount of non-exempt property which would have to be surrendered in a Chapter 7 Bankruptcy, or for individuals with co-debtors on personal debts.  Once the plan is approved, the debtor pays off the debts through monthly installments that are paid to a Chapter 13 Standing Trustee.  The trustee distributes the payments to creditors in accordance with the plan.

Because a number of factors play a role in determining whether a Chapter 13 filing is appropriate (such as future income and worth of non-exempt property), it’s important to make use of experienced counsel before making a decision. At our conveniently located offices in Hampton and Chesapeake, attorneys at the Law Offices of John E. Bedi will be happy to meet with you and conduct a free bankruptcy and debt relief consultation to help you determine your appropriate course of action.

See our dedicated sections to learn more about Chapter 7 Bankruptcy and Chapter 11 Bankruptcy.