Chapter 13

Under Chapter 13, the debtor proposes a plan to pay his creditors over a 3- to 5-year period. This written plan details all of the transactions (and their durations) that will occur, and repayment according to the plan must begin within thirty to forty-five days after the case has started. During this period, creditors cannot attempt to collect on the individual’s previously incurred debt except through the bankruptcy court. In general, the individual gets to keep his property, and his creditors end up with less money than they are owed.

In Chapter 13, the debtor retains ownership and possession of all of his or her assets, but must devote some portion of his or her future income to repaying creditors, generally over a period of three to five years. The amount of payment and the period of the repayment plan depend upon a variety of factors, including the value of the debtor’s property and the amount of a debtor’s income and expenses. Secured creditors may be entitled to greater payment than unsecured creditors.

Benefits of Filing for Bankruptcy

Filing for bankruptcy is a serious and important decision that has significant ramifications. The bankruptcy lawyers of Lyndon Ruhnke, P.C., can help you decide whether filing for bankruptcy is right for you. We can advise you on whether you qualify for a Chapter 7 liquidation, or would be better served by entering into a Chapter 13 repayment plan.

Among the many benefits of filing for bankruptcy are:

  • Stop garnishments on bank accounts and wages

  • Stop home foreclosures

  • Stop harassing phone calls from bill collectors and collection agencies

  • Prevent utilities from being shut off
* Stop car and truck repossessions

  • Eliminate some back taxes

Member of the National Association of Consumer Bankruptcy Attorneys (NACBA).“We are a debt relief agency. We help people file for relief under the Bankruptcy Code.”