Chapter 13 Bankruptcy

Chapter 13 bankruptcy is commonly referred to as "reorganization bankruptcy." This is because whereas Chapter 7 typically involves low-income debtors who do not have property, or who have very little exempt property, discharging their debts, Chapter 13 bankruptcy allows individuals, including married couples, who have some regular source of income or savings, to reorganize their debts into a manageable situation. When you file for Chapter 13 bankruptcy, you, along with your attorney, will put together a proposal for how you plan to pay certain creditors back, over a three-to-five-year plan. Under your proposal, you can ask that certain debts, typically unsecured debts including medical bills and credit card debts, be discharged in part or in full, meaning you no longer owe them. Chapter 13 bankruptcy also allows you to retain your property, including your home and your vehicles, and to claim a great deal of other exempt property, if it is in your best interest to do so. To learn whether you qualify for a Chapter 13 bankruptcy, what types of property you may be able to retain, and what debts you are eligible to discharge, please contact Attorney Timothy Heinle with our office for a free consultation.