Chapter 13—Restructuring and Repayment of Debt
Chapter 13 gives you an opportunity to pay back some of your debts over time. It is most often used to give you time to bring past-due payments, on a mortgage or car loan, current, or if you have property that you want to keep and don’t want to have sold by a Chapter 7 trustee. In Chapter 13, you remain in control of all your property. Under a plan that is approved by the bankruptcy court, you make weekly or monthly payments to the Chapter 13 Trustee, who then makes payments to your creditors. The payment period is typically around three years but can be as long as five years. In this way you protect the equity in your home or car while paying off a portion of debts.
The requirements for a Chapter 13 plan are very technical and can be confusing, even to an attorney who does not practice extensively in bankruptcy court. The attorneys at Grochocinski, Grochocinski and Lloyd have represented clients in Chapter 7 and Chapter 13 cases for decades and can help you choose the appropriate form of bankruptcy for your unique financial situation.
