Chapter 13 Bankruptcy

Stop creditors and get more time to pay.
Filing for Chapter 13 bankruptcy stops creditors, lawsuits, wage garnishments, bank levies, and other collection actions immediately, giving you time to restructure your debts. Yes, you’ll pay into a three- or five-year repayment plan in Chapter 13. But your money will go toward the debts that matter most—like your mortgage, car loan, support obligations, and taxes. Remaining debts, such as credit card, medical, and utility bills, usually receive only a fraction of what you owe.

Also, Chapter 13 offers unique debt solutions not available in Chapter 7, sometimes making Chapter 13 the better choice even for those who qualify for Chapter 7. For instance, only in Chapter 13 can filers do the following:

keep all property
avoid foreclosure and vehicle repossession
pay the fair market value for a car, and
in some cases, eliminate a junior mortgage loan.


This plain-English Chapter 13 guide covers the Chapter 13 process from start to finish, explaining how to determine if you qualify for Chapter 13, what’s required to catch up on your mortgage and keep your home, and how to rebuild your credit after bankruptcy. You’ll also learn more about the following:

how much you’ll pay in a repayment plan
which debts get erased when the case ends, and
how to find and hire the right lawyer

The revised edition explains where to find legal updates, bankruptcy forms, and state-specific information.