Chapter 13 Bankruptcy Law

Chapter 13 Bankruptcy Services in Little Rock, NLR, Bryant, Sherwood, Maumelle, and other surrounding areas

What is Chapter 13 Bankruptcy?

Chapter 13 protection allows you to keep all your property. This bankruptcy law is less about wiping away debt, and more about reorganizing your finances as an individual. This means you repay all or part of debt, and it’s a great alternative to liquidation because it helps you fight against repossession and fight against foreclosure. Under this type of bankruptcy, you can create a reorganization plan for your mortgage, vehicles and taxes which means that Chapter 13 protection allows you to keep all your property.
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What is Chapter 13 Bankruptcy?

Chapter 13 protection allows you to keep all your property. This bankruptcy law is less about wiping away debt, and more about reorganizing your finances as an individual. This means you repay all or part of debt, and it’s a great alternative to liquidation because it helps you fight against repossession and fight against foreclosure. Under this type of bankruptcy, you can create a settlement plan for mortgage, which means that Chapter 13 protection allows you to keep all your property.
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Why Chapter 13 Bankruptcy?

Chapter 13 is less about the elimination of debt and more about the reorganization of an individual’s finances. The Chapter 13 process requires that the debtor (that’s what we call the person who files the bankruptcy case) make a monthly payment to a Chapter 13 Trustee for a period of 36 to 60 months. The Trustee then distributes that money to the debtor’s creditors who have filed proper claims.

Chapter 13 Bankruptcy VS Chapter 17 Bankruptcy

Chapter 13 may provide a debtor with bankruptcy protection even if they make too much money to qualify for a Chapter 7 case or if he received a discharge in a prior Chapter 7 case. It allows a debtor the length of the plan to pay back past due amounts owed on houses, cars and other loans that have collateral. Chapter 13 may allow a debtor to set new terms for the payment of a car loan that is older than 2.5 years.

Chapter 13 Bankruptcy Payment Plan

The hallmark of a Chapter 13 case is its payment plan. The payments last from 36 to 60 months and may include an amount that will go to unsecured creditors, past-due taxes, child support, and past-due home mortgage amounts. It may even include car or house payments and some portion of a debtor's attorney fees. For someone that is wanting an experienced bankruptcy lawyer in Central Arkansas, call Cash Law Firm.
  • What Chapter 13 Bankruptcy Can Do For You

    The payment plan is the hallmark of this type of bankruptcy law and it helps you fight against repossession and fight against foreclosure. It may include a reorganization plan for your mortgage and vehicles, as well as an amount designated for unsecured creditors, child support, past-due taxes, past due mortgage amounts, and more. 


    By creating such a plan to repay all or part of your debt, it makes all the debts more affordable for the individual and provides a more convenient way to pay child support, income tax, car payments, etc. over time, and to create a settlement plan for mortgage.

  • Advantages of Chapter 13

    Chapter 13 gives individuals an opportunity to save their homes from foreclosure. By filing under Chapter 13, individuals can stop foreclosure proceedings and may be able to cure delinquent mortgage payments over time. Another advantage is it allows individuals to reschedule secured debts and extend them over the life of the Chapter 13 plan. Individuals will have no direct contact with creditors while under Chapter 13 protection.  

  • How To File For Chapter 13 Bankruptcy

    A chapter 13 case begins by filing a petition with the bankruptcy court. You must also file: 

    1. Any assets and liabilities 
    2. Current income and expenditures  
    3. Executory contracts and unexpired leases 
    4. A statement of financial affairs 
    5. Certificate of credit counseling and a copy of any debt repayment plan developed through credit counseling 
    6. Evidence of payment from employers
    7. A statement o f monthly net income and any anticipated incease in income or expenses after filing
    8. A record of any interest you have in federal or state qualified education or tuition accounts

    You must provided a copy of your tax returns or transcripts for the most recent tax year. The court will charge a case filing fee as well as a administrative fee.

    In order to complete the Official Bankruptcy Forms that make up the petition, statement of financial affairs and schedules, you must compile the following information:

    1. A list of all creditors and the amounts/nature of their claims
    2. The source, amout and frequency of your income
    3. A list of all your property
    4. A detailed list of your monthly living expenses
  • What happens after you file for Chapter 13 Bankruptcy

    When you file Chapter 13 bankruptcy, you will be required to make monthly payments to a Chapter 13 Bankruptcy Trustee for between 36 to 60 months. That money is then distributed by the trustee to those of the debtor’s creditors that have filed claims. The payment amount is determined by the types of debts, amounts owed, debtor’s income, as well as reasonable and necessary expenses of the debtor. 

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