Chapter 13 Bankruptcy

Not qualifying for a Chapter 7 bankruptcy does not close the door to resolution of your money problems. At Reed Law Firm, P.A., we communicate to our clients their various options to secure a debt-free future. One of those options is a Chapter 13 debt reorganization. Imagine one affordable monthly payment instead of multiple financial obligations that you struggle to afford.

Do not let myths and fear of judgment prevent you from asserting your rights to Chapter 13 bankruptcy protection. Call our Columbia-based firm at 803-726-4888 or our Florence law office at 843-679-0077 today.

Harassing Creditors and Collection Actions Are a Thing of the Past

In many cases, Chapter 13 provides an even broader discharge than Chapter 7 because we can include a larger variety of categories of debt. The repayment plan can include taxes, car payments, mortgage arrearage, child support arrearage and more. Your attorney will help put together and negotiate a plan for you to repay your financial obligations, most times at a fraction of what you owe. In exchange for the three- to five-year debt repayment plan as part of your Chapter 13 bankruptcy, you receive court-ordered protection and a discharge.

Creditor calls and foreclosure and car repossession actions cease immediately upon filing. At the end of the agreement, the remaining debts are discharged.

Dedicated Advocacy in Affordably Reorganizing Your Debts

At Reed Law Firm, P.A., we are at your side throughout the entire process of rebuilding your life. Months and years of stress with bill collectors contacting you and liens placed against your property come to an end. There is hope. Bankruptcy is all we do for you and residents throughout South Carolina. We are committed to getting all of our clients that much needed fresh start.

What is Chapter 13 bankruptcy, and how does it work?

Chapter 13 bankruptcy, often referred to as a "wage earner's plan," is a form of bankruptcy that allows individuals with a regular income to reorganize their debts and create a manageable repayment plan. Under Chapter 13, you work with the court and a bankruptcy trustee to develop a plan to pay off your debts over a period of three to five years. This plan is based on your income and expenses, and it typically allows you to retain your assets while catching up on missed payments like mortgages or car loans.

Discuss whether Chapter 13 bankruptcy might be right for you with our experienced bankruptcy attorneys.

Who is eligible for Chapter 13 bankruptcy?

To be eligible for Chapter 13 bankruptcy, you must meet certain criteria. Generally, you need a regular source of income to fund your proposed repayment plan. Your unsecured debts (such as credit card debt and medical bills) must not exceed a certain limit, and your secured debts (like mortgage or car loans) should not exceed a specified amount. Additionally, you must have filed your federal and state income tax returns for the past four years.

Our legal team can review whether you meet the eligibility requirements for this type of case.

How does Chapter 13 differ from Chapter 7 bankruptcy?

Chapter 13 and Chapter 7 are two distinct types of bankruptcy. Chapter 7 bankruptcy is known as "liquidation bankruptcy," and it involves selling non-exempt assets to pay off creditors before eliminating most remaining debts. Chapter 13, on the other hand, allows you to keep your assets and repay your debts through a structured payment plan over time.

The choice between Chapter 7 and Chapter 13 depends on your financial situation and goals, and we can help you choose the best path for your circumstances.

Can I keep my home and car if I file for Chapter 13 bankruptcy?

Yes, one of the primary benefits of Chapter 13 bankruptcy is that it allows you to keep your home and car, even if you've fallen behind on payments. Through your repayment plan, you can catch up on mortgage arrears and repay car loans at more favorable terms in order to retain these assets. However, it's crucial to maintain ongoing payments during the Chapter 13 plan to avoid further financial complications.

How long does a Chapter 13 bankruptcy process take?

A Chapter 13 bankruptcy case typically lasts three to five years, depending on the length of your repayment plan. It's essential to adhere to the terms of your plan and make timely payments throughout this period. After successfully completing your plan and meeting all other requirements, you can receive a discharge, which eliminates most remaining unsecured debts and marks the end of your Chapter 13 bankruptcy case.

Keep in mind that these are only some of the many questions we hear regarding Chapter 13 bankruptcy. Our goal is to find the right solution to get your finances on track, which might include this type of case. Consult with us directly to learn more!

Contact Us

For more information or to schedule an appointment with an experienced lawyer regarding a Chapter 13 bankruptcy filing, please contact us.

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