Chapter 13 Bankruptcy

Chapter 13 bankruptcy allows an individual to consolidate their debt while making convenient monthly payments to a trustee. A payment plan is proposed which repays the debt over a 3 to 5 year period. The length of the repayment plan and the amount of the monthly payment is based upon the following factors:

• Monthly income of the individual
• Monthly expenses of the individual
• Nature and amount of the debt

The most common uses of Chapter 13 bankruptcy involve:

• Repayment of mortgage arrears (back amounts owed) home
• Restructuring of an auto loan to save a vehicle

Secured debts are paid 100% on the dollar, while unsecured debts may be paid less than 100% on the dollar. An individual receives a discharge under Chapter 13 once the payment plan has been completed.

The State Bar does not certify any lawyer as a specialist or expert. This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.