Understanding Chapter 13 Bankruptcy

A Legal Solution That Can Help You Prevent Foreclosure, Repossession And Wage Garnishment

If you are reading this page, you're likely struggling with debt and are curious about bankruptcy.

Chapter 7 bankruptcy is an option for many consumers with unsecured debt, but there may be a better solution for your situation: Chapter 13 bankruptcy.

Four Ways Chapter 13 Is Different From Chapter 7 Bankruptcy

Like Chapter 7, Chapter 13 can help discharge certain debts (or reduce the amount you owe), and it will stop collectors from contacting you and trying to garnish your wages. There are, however, several big differences.

1. Chapter 13 requires you to make payments on at least some of your debt.

Established with a court and a court-appointed trustee, many Chapter 13 filers will need to commit to manageable monthly payments that last three to five years. The debts are consolidated and more affordable and at the same time satisfy your creditors.

2. Chapter 13, unlike Chapter 7, can stop the foreclosure process.

In some cases, Chapter 13 allows individuals to make up missed mortgage payments and keep their homes. In some cases, you can refinance the mortgage, allowing you to make more affordable monthly mortgage payments post-bankruptcy.

3. Chapter 13 can help you prevent repossession of your car or truck.

A Chapter 13 filing can be used to reorganize your vehicle debt and deal with back payments so you can keep your source of transportation, and in some cases it can significantly lower your car payments. In cases where your vehicle has already been repossessed, Chapter 13 can help you get your vehicle back.

4. Chapter 13 can help you get caught up on child support payments, recent tax debt and student loans.

Unlike Chapter 7 bankruptcy, Chapter 13 takes into account secured debt like back taxes, student loans and child support payments. Depending on your circumstances, you may be able to find relief from some or all of these types of debts.

Reach Out To Our Firm For Guidance: 803-407-4140

At Lord Law Firm, LLC, we have helped many individuals throughout Columbia, South Carolina, use Chapter 13 bankruptcy as a way to gain control of their debt and avoid serious problems like home foreclosure and car repossession. Contact our office to learn more about Chapter 13 and whether it's right for you.

In some cases, it may not be. Other solutions, like consumer credit counseling and debt settlement, may be a more preferable option to bankruptcy.

You won't know until you call.

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