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Chapter 13

This chapter is for debtors with a good income but need time to pay off their debts. It allows the debtor to pay off all debts over a 3 to 5 year period.  

The benefits include:

  • As with Chapter 7, all creditor action against you is halted.

  • You may keep all of your property.

  • You pay off your unsecured debt interest free.

  • You may reduce your overall monthly payments by having your debts consolidated into one payment to the bankruptcy trustee.

  • This action buys time to handle a bankruptcy foreclosure. You may include your home loan arrearages in your payment plan. You may then keep the home if you can maintain your mortgage payments in addition to the Chapter 13 payment for your past debts.

At the Beacon Law Firm, our seasoned bankruptcy attorneys can advise you regarding the filing of bankruptcy. We will go over your situation and evaluate how alternatives to bankruptcy, Chapter 7 Bankruptcy, Chapter 13 Bankruptcy would work for you. We will then advise you of your options and let you decide. We will then assist you to carry out your objectives.

What is the Chapter 13 Process

Below are the steps for Chapter 13 bankruptcy:


1. Consult with a bankruptcy attorney. Go over your debt situation with an experienced lawyer and they will advise you of your options. We professionally prepare your documents.

2. Our lawyer will file the bankruptcy for you. Your creditors are notified of the filing and must cease any collection action against you.


3. Attend the Meeting of Creditors. Within 30 to 45 days after the filing, you have a meeting of creditors. The bankruptcy trustee will interview you about your petition and any creditors present may also ask questions.


4. Repay your debt based on the payment plan. The bankruptcy trustee takes your monthly payments and makes regular distributions to creditors. This will go on for three to five years until you complete your payment plan.


5. Chapter 13 Discharge. Upon completion of your payment plan, the court issues a discharge of any remaining unsecured debts you may have.

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