Chapter 13

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Chapter 13 Bankruptcy Attorney In Bedminster, New Jersey

What Is A Chapter 13 Bankruptcy?

Chapter 13 is a special portion of the Bankruptcy Code that permits people to pay a portion of their income over the course of either three or five years in order to discharge almost all of their debts.

Unlike a chapter 7 bankruptcy, which focuses on assets, a chapter 13 bankruptcy focuses on income. A person with a "regular income," whether through a job, small business, family contributions or government benefits, can use those resources to fund a payment plan.


A chapter 13 bankruptcy is designed to permit the debtor to retain all of his or her property. If a debtor is behind on his or her mortgage, he or she can use the chapter 13 plan to catch back up on overdue amounts. Because of this, chapter 13 is a powerful tool for a debtor who is facing the possibility of foreclosure. At the end of the chapter 13 plan, a debtor will probably have paid out a very small amount to unsecured creditors, but will still probably have all of those debts discharged.

Contact Law Offices of Andy Winchell, P.C. to schedule a consultation with a lawyer today. 973-620-7303

How Do I Qualify for a Chapter 13 Bankruptcy?

First of all, you need a regular, stable income – enough to make regular payments in the court’s judgment. Your income need not come from a job, but you can also qualify if you receive Social Security or disability benefits, unemployment payment, retirement benefits, or even rental income. However, if you’re a stock or commodity broker, you won’t be eligible for a Chapter 13 bankruptcy. Corporations, too, are ineligible for Chapter 13 relief. Sole proprietors and self-employed persons are also eligible if their debts fall within certain specified boundaries. Also, if your debts span more than three to five years, you will likely qualify, provided you pass a means test to determine your eligibility. Our experienced legal team can review your situation before you file to help you determine if a Chapter 13 bankruptcy is in your best interest. To get started, contact our office as soon as possible.

What Happens During a Chapter 13 Proceeding?

First, you’ll need to prove your eligibility through the means test we mentioned earlier. If you’re eligible, filing for a Chapter 13 bankruptcy will stop any foreclosures, wage garnishments, repossessions, lawsuits, or other harassment by your creditors. While we’ll help you create a repayment plan, the court must approve your plan. The court will determine whether you have proposed this plan in good faith, that the amount your unsecured creditors will receive is not less than you would have paid with a Chapter 7 filing. Also, your payments must maximize all your disposable income – which means all your income that does not go toward your support and maintenance. It’s a complex process, but with an experienced bankruptcy lawyer by your side, you can have the confidence that you will come out of the process with success. To start the process, get in touch with our office today.

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Disclaimer: We are a debt relief agency. We are attorneys who help people file for bankruptcy relief under the bankruptcy code.

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