Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is not a “liquidation” like a Chapter 7 bankruptcy. It is intended for debtors who have income and who want to pay off their debts in whole or in part. A proposed plan of repayment of the creditors will be submitted to the bankruptcy court for approval. If you obtain a court approved plan, you will be making payments to creditors over an extended a period of time, usually between 3 to 5 years depending on the court approved plan. At the end of the period, any remaining outstanding debt will likely be discharged.

When a Chapter 13 bankruptcy is filed an “automatic stay” goes into effect. This “stay” immediately stops virtually all actions any creditors have been taking against you. Any existing lawsuits or wage garnishments, harassing telephone calls from creditors or foreclosures will be halted. If you are feeling mounting pressure then you owe it to yourself to contact an attorney and see if relief is available. Contact The Harrian Law Firm, P.L.C for immediate assistance.