Repayment: Chapter 13 Bankruptcy

If you do not qualify for a Chapter 7 then you can still file for bankruptcy under Chapter 13. Also called "repayment" or "reorganization," Chapter 13 also wipes out much of your debt and allows for a new start after the repayment of some or part of your debts. Generally, the repayment process with a Chapter 13 starts within 30 days after filing.

In a Chapter 13 filing you will work with a trustee. The trustee reviews your repayment plan. He or she will confirm or object to it. The trustee then collects payments and distributes the payments to approved creditors. Trustees receive a commission on the payments made.

The Flexibility Of Chapter 13

The benefit of a Chapter 13 filing is the flexibility. The type, length and amount of repayment are not preset but are determined on a case-by-case basis. This means that trustees must assess the big picture when assessing repayment plans. The assessment must take into consideration your child and spousal support payments, medical necessities and treatments and student loans. An experienced bankruptcy attorney can advocate for you and ensure that the best plan for you and your family (rather than the best plan for the creditors or the state) is the plan that is followed. Lawyer Justin D. Irish has helped hundreds of people with their Chapter 13 filing and can work as your advocate, too.

Chapter 13 Has Advantages

The benefits of a Chapter 13 repayment plan include:

  • It stops foreclosure.
  • Debt consolidation: Your payments are stretched out, forgiven or reduced.
  • It stops wage garnishment.
  • Creditors must accept the amount you paid as full payment.
  • The vicious payment-finance charge-payment cycle ends.
  • Your entire financial situation including required payments is considered and accommodated to ensure you can maintain a reasonable lifestyle.
  • The automatic stay stops creditors from contacting and harassing you.

A Chapter 13 filing means you can still make reasonable monthly installments while maintaining your home, car, medical costs and the property on which you are still making payments.

Our Focus Is Getting The Job Done Right

Attorney Justin D. Irish will work with you to create a viable repayment plan that works for you and your family. Call 949-836-0543 to speak with attorney Justin D. Irish about your situation. Or fill out our online contact form for a prompt response, usually the same day. Serving beautiful Costa Mesa and Orange County, California.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.