What is Chapter 13 Bankruptcy?

Bankruptcy Lawyer Stan LuongoChapter 13 bankruptcy is a form a debt consolidation and rehabilitation for debtors that still have an income. Individuals are subject to a “financial reorganization” that is administered by a bankruptcy court. Unlike chapter 7 that relieves individuals of certain debt, chapter 13 establishes a court approved plan to recover from debt.

A typical Chapter 13 bankruptcy case creates a plan for the debtor to repay their creditors in 3-5 years. During this period the creditors cannot contact the debtor outside of the bankruptcy court. Generally chapter 13 cases result in the debtor paying less to the creditors than they are owed.

Chapter 13 Bankruptcy Attorneys

When creating a plan to repay debt in a chapter 13 bankruptcy case, it is essential to have a professional to help you to understand the law, and negotiate a debt recovery plan. Bankruptcy lawyers exist because the benefits of heaving an experienced lawyer to represent you in bankruptcy court outweigh the cost of their services.

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If you are considering filing for bankruptcy or desire a free consultation to explore your options to financial freedom talk with us today.