McConnell Law Group | Chapter 13 Bankruptcy | McConnell Law Group

Chapter 13 Bankruptcy

A Chapter 13 bankruptcy is a personal reorganization bankruptcy. It is most often filed by those who are trying to catch up their payments on a home or vehicle or by those who make too much money to qualify for Chapter 7.

When you file Chapter 13, you agree to subject your finances to the supervision of a Chapter 13 trustee for 3 to 5 years, depending on your debts and your income. During that time you provide all of your disposable income (what is left over from your income after you pay your reasonable living expenses) to the Chapter 13 trustee, who will then distribute this money to your creditors as outlined in your Chapter 13 plan that is prepared by you and your attorney. Whatever has not been paid back to your creditors at the end of the payment plan is, with some exceptions, discharged like in a Chapter 7.

Chapter 13 also allows you to seek modification of mortgages and interest rates on auto loans and, in certain circumstances, may allow you to remove a second mortgage lien from your home. As with Chapter 7 bankruptcy, Chapter 13 bankruptcies can be very complicated and should only be filed after consulting with an attorney experienced in filing Chapter 13 bankruptcies. McConnell Law Group can help you determine if Chapter 13 bankruptcy will be beneficial in your circumstances. Contact us for a free consultation.