Is Chapter 13 Right for Me?

Are you drowning in debt and struggling to stay afloat? Do you have a steady income but can’t seem to catch up on your bills? Chapter 13 bankruptcy can provide financial relief. We encourage our clients to explore their options and carefully consider the best course of action before filing.

If you wonder whether bankruptcy is the answer to your financial dilemmas, seek early advice from an experienced Ann Arbor Chapter 13 bankruptcy attorney. For more than two decades, Marrs & Terry, PLLC, has offered individualized counsel and legal representation to thousands of clients in Chapter 7 and Chapter 13 bankruptcy. Contact our law firm online or call 734-663-0555 to learn how we can help you. We bring more than 24 years of experience to every case, and we offer in person or remote appointments.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is debt reorganization. Chapter 13 bankruptcy also provides a way to protect and retain assets, repay secured creditors and handle all other debts.

Chapter 13 bankruptcy allows individuals to restructure their debts and repay them over time. In Chapter 13 bankruptcy, debtors propose a repayment plan to the court that lasts three to five years. The plan must include all disposable income (income after necessary expenses are paid) and must be approved by the court before it can take effect. After the repayment plan is confirmed, debtors make monthly payments to a trustee who then disburses the funds to creditors according to the terms of the plan.

Creating A Customized Debt Reorganization Plan Through Chapter 13

When you file Chapter 13 bankruptcy, also called a wage earner’s plan or debt reorganization, you will collaborate with a bankruptcy attorney to create a three to five year repayment plan for your creditors. Filing for Chapter 13 has several advantages over other types of bankruptcy:

  • Chapter 13 bankruptcy stops foreclosure proceedings and gives you time to bring your mortgage current. If your family home is your only asset, this can be a huge relief.
  • You are able to keep your assets away from creditors, such as a car, jewelry, major appliances, your 401(k), and your pension. Some of these assets may not be protected in a Chapter 7 bankruptcy.
  • If your income is too high to qualify for Chapter 7 or if you have filed for Chapter 7 bankruptcy in the past and received a discharge within eight years, Chapter 13 may be the best option to reorganize your debt.
  • Creditors must file claims and comply with the rules of Chapter 13 bankruptcy. There is no option for creditors to pursue you for money owed.

Qualifications For Filing Chapter 13

Chapter 13 bankruptcies are reserved for debtors with a regular source of income. In order to qualify, you must be able to demonstrate that:

  • You have enough disposable income to make monthly payments to creditors.
  • Your unsecured debts is less than $2,750,000.00.
  • You have not filed for bankruptcy in the last 180 days
  • You have not been discharged from another Chapter 7 within the past four years or 13 within the past two years.

Contact Our Experienced Attorneys Today To Discuss Whether Chapter 13 Is Right For You.

If you have medical bills, credit card bills, consumer debt such as car loans or mortgage payments that you cannot repay, please talk to us about Chapter 13 bankruptcy. Stop creditor calls. Stop wage garnishment. Save your home. Contact us online or call 734-663-0555 to discuss your financial concerns.

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