Chapter 13 bankruptcy allows you to reorganize your debts into a manageable repayment plan over three to five years while keeping your home, car, and other assets.
Free Financial ConsultationChapter 13 represents a reorganization approach where your debts are discharged while your property generally remains protected. Unlike Chapter 7, Chapter 13 allows you to keep your house, cars, and potentially additional assets like boats or rental properties if your finances align with the repayment plan.
Under a Chapter 13 plan, you repay a portion of your debt over three to five years depending on your income. At the end of the repayment period, the remaining unpaid debt balance is eliminated, giving you a true fresh start while having preserved your most important assets.
Key Benefits of Chapter 13
Interest rates on high-interest vehicle loans can be adjusted if the vehicle was purchased more than 910 days (approximately 2.5 years) before filing. Back tax interest and penalties typically stop, enabling faster repayment of tax obligations.
The primary purpose of bankruptcy is creditor protection. Filing provides immediate relief through the automatic stay, which offers the following protections:
Most individuals lack sufficient cash reserves for independent debt settlement, as creditors typically demand immediate payment rather than installment plans. Chapter 13 provides a court-supervised alternative that creditors must accept.
Both Erin Bradley McAleer and Robert R. Andersen have crafted Chapter 13 plans since beginning their bankruptcy practice. Our firm has handled approximately several hundred Chapter 13 cases, which represent roughly one-third of all bankruptcies we have completed. While less common than Chapter 7, Chapter 13 cases are highly complex and potentially very beneficial for the right candidates.
A couple experienced significant financial hardship following medical emergencies and an uninsured car accident. The wife underwent surgery without active insurance, resulting in substantial medical debt and two months away from work. Approximately two weeks after the wife returned to work, the husband was involved in a serious car accident, adding further uninsured medical expenses. The couple fell behind on their mortgage payments.
Through a Chapter 13 plan, they were able to recover their back mortgage payments, acquire a replacement vehicle, and stabilize their finances. After completing the plan, both returned to employment with improved financial stability and career advancement.
Our consultation process begins by listening to your circumstances and assessing your needs. We provide information about all available options, discuss the advantages and disadvantages of each approach, and ensure you maintain full decision-making authority. Our team supports you through the entire process, answering questions, providing necessary documentation, and working to eliminate the fear and uncertainty that often accompanies bankruptcy proceedings.
Contact the Law Office of Erin Bradley McAleer today to schedule a consultation and learn whether Chapter 13 is right for your situation.
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