Chapter 13

Chapter 13 Bankruptcy: A Repayment Plan

Someone organizing to prepare for filing for Chapter 13 Bankruptcy

Basically, Chapter 13 Bankruptcy is a Court monitored repayment plan. You keep all of your property and propose a plan to repay all or some of your debts over a 3 to 5 year period. A payment is made each month to a court-appointed trustee. Once the Plan is approved and confirmed by the Court, the trustee then disburses the funds to the creditors who filed claims.

To be eligible for a Chapter 13 Bankruptcy, you must have regular monthly income such from sources such as wages, retirement income, business income (self-employed), rental income, alimony, unemployment compensation, social security, disability, VA benefits. Even family member contributions, if received on a regular basis, is considered income. The income must be sufficient to enable you to make payments under a proposed plan. A prior bankruptcy may limit use of a Chapter 13.


Chapter 13 Bankruptcy is a great choice for individuals who find themselves in any of the following situations:

  • behind on their mortgage or car payments
  • facing foreclosure or repossession
  • have tax debts
  • have past due child support or alimony
  • have non-exempt assets
  • have filed chapter 7 before and a full 8 years has not passed yet

Some benefits of a Chapter 13 are:

  • interest stops accruing during the pendency of the bankruptcy
  • you may be able to get rid of your second mortgage (in some circumstances)
  • you may be able to reduce the lien amount of your vehicle to the present fair market value (in some circumstances)
  • and you may be able to reduce the interest rate on your vehicle loan (in some circumstances)
  • protects family member or friends that may have co-signed a debt for you
  • certain debts that are not dischargeable in a Chapter 7, may be discharged in Chapter 13 if you successfully complete the case.

Filing for Bankruptcy is a complicated process. It involves federal and state law. That is why you should NOT attempt to file a case on your own, nor should you engage the services of a bankruptcy petition preparer. Call the Law Office of Starla J. Hudachek (410) 560-7455 for a free consultation. I will help you determine if Chapter 13 Bankruptcy is the right solution for your financial problems.

If you think that I may be able to help...

Please don't hesitate to reach out to me. I am compassionate and charge a fair rate!

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The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice. Viewing this site does not constitute an attorney-client relationship. A formal written agreement must be entered into in order to establish an attorney-client relationship.