Chapter 13 Bankruptcy Lawyer

Repay and Reorganize Debt with Chapter 13 Bankruptcy

For many of our clients at Garnett Law Office, Chapter 13 bankruptcy is an excellent choice for taking control of debt. We have over 20 years of experience in bankruptcy law, and we'll help you explore your options. Initial consultations are free, so call today.

Personal Reorganization of Debt

This is a personal reorganization of your debt. Under Chapter 13, payments are made through the court, and all your possessions you have upon filing are protected. Chapter 13 also allows for some mortgage restructuring, often eliminating second mortgages on homes and modifying mortgages under court supervision. Typically, at least some unsecured debt is paid, albeit a very small percentage of the totals. Payment plans normally range from three to five years.

Plan of Repayment

When a Chapter 13 bankruptcy is filed, a payment plan is filed as well. The plan of repayment is based upon your income and expenses, as well as your last six months’ income. The plan sets out the monthly payment and how that payment will be distributed to creditors.

There are many factors that are used when calculating a plan payment, including, but not limited to, current monthly income and expenses, income and expenses for the six (6) months prior to filing, and the amount necessary to catch up on mortgage payments and pay the current mortgage payment. 

Plans must be approved by the Court and provide for fixed payment amounts to the Trustee on a monthly basis. The Trustee then distributes these funds to creditors according to the terms of the plan.