Chapter 13 bankruptcy is a reorganization or repayment bankruptcy for individuals.  Unlike the short process of a Chapter 7 filing, Chapter 13 lasts between 3 and 5 years.  Over that time period, none of your creditors are allowed to attempt direct collection from you.  Instead, a repayment Plan is filed with the Court and a single monthly payment is made through the court system.  The Trustee, appointed by the Court to oversee your case, makes payments to your creditors from these monthly funds.  At the end of the 3 to 5 year period, all remaining unsecured debts are generally discharged.

Chapter 13 bankruptcy has several significant distinct advantages over Chapter 7 for homeowners.  Among them is the possibility of being able to strip-off second or third mortgages and the ability to catch up in the arrears on past due mortgage accounts.

Whether Chapter 7, Chapter 13, or another form of debt relief is right for you is best assessed following consultation with a qualified bankruptcy attorney.  Chad M Sherwood has years of experience and the knowledge to properly evaluate your situation and guide you through the process.  Contact our office today for a free consultation.

We are a debt relief agency. We help people to file for bankruptcy under the Federal Code.