CHAPTER 13 BANKRUPTCY

What is Chapter 13 Bankruptcy?

A Chapter 13 bankruptcy is better than a Chapter 7 bankruptcy in some instances. Chapter 13 is right for you if you are behind on your mortgage or car loan and want to make up your missed payments. Also, it is the best choice if you have debts that cannot be discharged in Chapter 7, have nonexempt property that you want to keep, or if you have a co-debtor on a personal debt. Call us today for more information.

Chapter 13 Bankruptcy Paper — St. Joseph, MI ─ Armstrong, Betker, & Schaeffer PLC

Chapter 13 Bankruptcy FAQs

Is Chapter 13 Right for Me?

Chapter 13 bankruptcy can relieve stress that comes with financial burdens. However, this option is not for everyone. For example, those who have had their debt discharged in the past four years are ineligible. Chapter 13 bankruptcy is also only available to those who have less than $336,900 in unsecured debts and less than $1,010,650 in secured debts.
How Will Chapter 13 Help?

Chapter 13 bankruptcy consolidates your debts with a payment based on what you can afford in the next three to five years. Often, the amount you pay back is less than the full amount owed, and your interest rates can be reduced substantially.
What Debts Will I Still Have to Pay?

Under Chapter 13, some debts must be paid in full. Child support, alimony, and non-dischargeable taxes must be paid off, even though these are unsecured debts. In addition, secured debts such as a mortgage, vehicle loans, and tax liens must be paid in full during the repayment time. Other debts are then reduced.