Chapter 13: Debt Reorganization And Repayment

Chapter 13 bankruptcy is often called debt reorganization. It involves a three- to five-year debt repayment plan that is manageable for your budget. In the debt reorganization, secured debts have the highest priority. Unsecured debts have the lowest priority. Legal fees are built into the monthly payments. At the end of the repayment period, remaining unpaid debt is dischargeable.

After all facts are taken into consideration, many debtors realize that a Chapter 7 bankruptcy is not the right path to take. Chapter 13 eligibility applies to many more debtors than Chapter 7 eligibility. If the government-required means test determines that you are not eligible for Chapter 7 bankruptcy, Chapter 13 may be an obvious solution.

Considerations For Consumers Thinking Of Filing Chapter 7 Or Chapter 13 Bankruptcy

Even if you qualify for Chapter 7 bankruptcy, factors such as the following may lead you to choose to file Chapter 13 bankruptcy:

  • You have significant home equity and want to keep your house.
  • You need to repay mortgage arrearages and Chapter 13 bankruptcy will allow you to do this manageably.
  • You owe back taxes that can be included in the Chapter 13 debt reorganization and repayment plan.
  • You owe back child support.
  • You have missed car payments and want to keep your car.

We often remind our clients considering Chapter 13 bankruptcy that the necessary attorney-client relationship will be something like a short-term marriage. Communication, collaboration and persistence together are necessary factors. Choose a lawyer you can trust over the long haul of a Chapter 13 bankruptcy. Consider our North Carolina attorneys, with our experience and dedication as conducive to successful Chapter 13 bankruptcy representation.

We Look Forward To The Opportunity To Evaluate Your Potential Chapter 13 Case

Contact a dedicated North Carolina Chapter 13 bankruptcy attorney at our Monroe law offices by calling 704-288-3262 or sending an email message through this website. Request a free initial consultation.

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