Chapter 13 is a reorganization bankruptcy also known as the “wage earner” bankruptcy. only those with a reliable source of income are allowed to file for Chapter 13, if you have more property that can be exempted or if you are in default with the mortgage or car payment, a Chapter 13 might be better suited to your situation. This type of bankruptcy allows you to keep your property and repay some or all of your debts over a three to five year period. The amount you pay back on the debt is determined by your income and the current value of the property, not by how much you owe. Any remaining balance owed at the end of the Chapter 13 bankruptcy will be erased.
Although you can file a bankruptcy case without an attorney, you should be aware that the process is complicated and riddled with many rules and exceptions to those rules. Failure to follow those rules correctly can result in an automatic dismissal of your case and you could be in danger of losing your property.
If you are contemplating bankruptcy, contact our office today and we will help you decide if bankruptcy is the best alternative for you.