Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a type of bankruptcy that provides debt relief for folks who make too much money to qualify for Chapter 7 or want to protect certain property they might lose in a Chapter 7. Learn how it works to find out if it’s right for you.
Chapter 13 Bankruptcy allows you to pay as much as your budget can handle, instead of trying to keep up with each creditors’ minimum monthly payments. But Chapter 13 isn’t right for everyone. Learn how Chapter 13 bankruptcy can help you, when it may be a better option to accomplish your goals, and why it’s probably a bad idea for most.
This page is a hub for people that need debt relief and are considering a Chapter 13 bankruptcy solution.
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Chapter 7 vs. Chapter 13 Bankruptcy: What’s the Difference?
Written by Attorney Andrea Wimmer.
Updated July 27, 2023
Chapter 7 and Chapter 13 bankruptcy are the two most common types of personal bankruptcy filings. Chapter 7 bankruptcy can wipe out unsecured debts like credit card debt and medical bills in just 3-4 months. Though the filing can stay on your credit report for 10 years. You must pass a means test and meet certain criteria to qualify for Chapter 7. Chapter 13 takes longer — usually 3-5 years — because filers are on a repayment plan. After the plan is up, any remaining unsecured debt is discharged. Chapter 7 can stay on your credit report for up to 7 years. Some filers choose Chapter 13 because they don’t qualify for Chapter 7 or because they own certain assets they want to protect. Even though there are differences between Chapter 7 and Chapter 13 bankruptcy, each one grants the filer a fresh financial start in the form of a bankruptcy discharge — a court order that relieves you of your debt and bans creditors from trying to collect from you on this debt.
Read More →What Is Chapter 13 Bankruptcy?
Written by Attorney Andrea Wimmer.
Updated October 15, 2024
Chapter 13 bankruptcy can help provide debt relief for folks who make too much money to qualify for Chapter 7. At its core, it reorganizes your debt to allow you to pay back as much as you can handle over a 3–5-year payment plan. After you make all your plan payments and meet all the other requirements, the bankruptcy court will enter a discharge, which wipes out your remaining eligible debt.
Read More →Why Is Chapter 13 Probably a Bad Idea?
Written by Jonathan Petts.
Updated October 2, 2024
Chapter 13 can be a helpful way for some people to reorganize and repay their debts. It’s often used by homeowners or people who own expensive property or assets they want to hang on to. But Chapter 13 requires a 3–5-year repayment plan, and many people aren’t able to successfully complete that plan. Also, it’s really difficult to file Chapter 13 successfully without a lawyer.
Read More →How Long Does Chapter 13 Bankruptcy Take?
Written by Attorney Jenni Klock Morel.
Updated August 8, 2023
Chapter 13 bankruptcy typically takes three to five years. During that time, you’ll be on a repayment plan to repay some or a portion of your debts. There are a few factors that will determine how long your Chapter 13 repayment plan will last, including your income. At the end of a successful Chapter 13 plan, the remainder of your dischargeable debts will be erased.
Read More →What Happens When a Chapter 13 Case Is Dismissed?
Written by Jonathan Petts. Legally reviewed by Attorney Andrea Wimmer
Updated November 21, 2024
When a Chapter 13 bankruptcy is dismissed, your case ends without any debts being discharged, and you lose the protection provided by the bankruptcy court. This means creditors can start or resume collection activities against you, such as wage garnishments, lawsuits, or foreclosure proceedings. Payments you made toward your Chapter 13 repayment plan won’t be refunded, and your debts will revert to what you owed before filing, minus any payments made during the case. Additionally, the dismissal will be noted on your credit report, which can negatively affect your credit score.
Read More →Is Chapter 13 Bankruptcy Worth It?
Written by Attorney Tina Tran.
Updated July 28, 2023
Chapter 13 bankruptcy is worth it when you do not qualify to file a Chapter 7 and have assets you want to protect.
Read More →Can I File a Chapter 13 Bankruptcy if I'm Unemployed?
Written by Attorney Tina Tran.
Updated August 8, 2023
Chapter 13 bankruptcy requires filers to make a monthly payment on a court-approved 3-5 year repayment plan. You don't have to be employed to file a Chapter 13 bankruptcy, but you do have to show you're capable of making those monthly payments to your trustee. For most people, this requires regular income.
Read More →Can You File Chapter 13 Bankruptcy Online Yourself?
Written by Curtis Lee, JD.
Updated July 20, 2023
Though there are online services that claim they can help you file a Chapter 13 bankruptcy by yourself, the success rate for people who file Chapter 13 without a lawyer is low. That’s because Chapter 13 cases include multiple types of debts and a repayment plan that can last from three to five years. It's not uncommon for filers to experience issues or changes while their Chapter 13 bankruptcy case is open, and it can be difficult to deal with those without legal help.
Read More →Can I file Chapter 13 without my spouse?
Written by Attorney Jenni Klock Morel.
Updated July 26, 2023
You can file for Chapter 13 bankruptcy without your spouse. A Chapter 13 bankruptcy works a little differently if only one spouse files. How certain debts and assets are treated is affected by whether the couple lives in a community property state or a common law state. Whether you’re best served by filing without your spouse or by the two of you filing a joint bankruptcy depends on the specifics of your situation. There are many valid reasons for which a person may want to or need to file for bankruptcy protection without their spouse. Read on to learn about filing Chapter 13 without your spouse.
Read More →Guide to Bankruptcy Relief for Small Businesses
Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated July 22, 2020
Small business owners who are struggling to pay the bills can often find relief, and even keep their businesses afloat, by filing business bankruptcy. But all bankruptcies are not created equal. To ensure that the outcome aligns with your goals, it is important to determine which type of bankruptcy is best for your unique situation.
Read More →Chapter 13 bankruptcy & Small Business Owners
Written by Attorney Amelia Niemi.
Updated July 26, 2023
Owning your own business has a lot of benefits. You’re the boss and you get to make the rules. On the downside, you take on a lot of risk, and you’re responsible for managing the books. This is doubly so when it comes to your bankruptcy filing. Read on to learn what you should know about business bankruptcy and Chapter 13.
Read More →Converting a Chapter 13 to a Chapter 7 Bankruptcy
Written by Your Upsolve Team. Legally reviewed by Attorney Andrea Wimmer
Updated July 20, 2023
Life happens to everyone, including those in a Chapter 13 repayment plan. Thankfully, the Bankruptcy Code provides a mechanism for changing (converting) your case from Chapter 13 to Chapter 7 bankruptcy if needed. Let’s take a look at what that entails exactly and what you should know about this affects your property and your debts.
Read More →How To File Chapter 13 Bankruptcy: A Step-by-Step Guide
Written by Jonathan Petts.
Updated October 9, 2024
Chapter 13 bankruptcy is the second most common type of personal bankruptcy after Chapter 7. You’ll need to take several steps to file Chapter 13, and after you file your case you’ll stick with a 3–5-year repayment plan to get a successful discharge. Because Chapter 13 is complicated, it’s advisable to hire a bankruptcy attorney to help you file your case. Most people who represent themselves in Chapter 13 cases aren’t successful.
Read More →Completing Debtor Education After Filing Chapter 13
Written by Attorney Karra Kingston.
Updated July 26, 2023
Everyone seeking Chapter 13 bankruptcy relief has to complete a mandatory credit counseling class before their case can be filed with the bankruptcy court. This has to be done in the 6 months before the case is filed. But what about the second required course? What is that all about and when is the best time to take it? Keep reading to find out.
Read More →Chapter 13 and Your Credit Report: What You Need to Know
Written by Attorney Karra Kingston.
Updated July 20, 2023
Bankruptcy provides relief to those who can’t afford to pay their debts as they come due. Oftentimes folks filing bankruptcy have fallen behind on their debt payments and their credit score has already taken the hit. But, that’s not always the case and this is especially true for folks filing Chapter 13 to reorganize their debt, rather than eliminate it completely through Chapter 7 bankruptcy. This article will explore the effect of Chapter 13 bankruptcy on your credit report and credit score.
Read More →Cramdown in Chapter 13 Bankruptcy
Written by Amy Carst. Legally reviewed by Attorney Andrea Wimmer
Updated July 26, 2023
In personal bankruptcy cases, a cramdown occurs when the filer pays off a car loan through a Chapter 13 bankruptcy repayment plan by paying only how much the car is actually worth, not how much is still owing on the loan. Upon successful completion of the repayment plan, the filer gets title to the vehicle free and clear.
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