Chapter 13 Bankruptcy: A Path To Stability For Income-Earners Struggling With Debt

If you have a regular income but are grappling with significant debt – whether secured, unsecured or both – Chapter 13 bankruptcy could be the way forward. It provides a path to address those debts while maintaining financial stability.

At Dickerson & Smith Law Group, we help clients throughout Virginia Beach, Norfolk and Chesapeake understand their options under bankruptcy law. Our experienced bankruptcy attorneys will work closely with you to develop a plan that fits your needs and helps you move forward with confidence.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is for wage earners struggling with debt. If you have a regular income and the capacity to at least partially pay down your debts through an affordable repayment plan, Chapter 13 may be for you.

The key benefit of Chapter 13 bankruptcy is that it allows you to address debt by establishing a three- to five-year repayment plan. It’s especially helpful for those who have fallen behind on secured debts – like mortgage payments or car loans – but want to avoid foreclosure or repossession. It’s also an option for those whose income or assets are too high to qualify for Chapter 7 bankruptcy.

Who Qualifies For Chapter 13 Bankruptcy?

To qualify, you must have a steady income, and your debt must be under certain limits. You’ll also need to be current on your tax filings and able to demonstrate that you can afford the proposed monthly payments.

If you’re unsure whether you meet the requirements, our attorneys can help you evaluate your eligibility and explore all available options.

Benefits Of Chapter 13 Bankruptcy

There are several advantages to filing Chapter 13 bankruptcy, especially for those who want to protect their assets while resolving debt. This type of bankruptcy:

• Stops foreclosure and allows you to catch up on missed payments
• Protects co-signers from collection efforts in many cases
• Consolidates debts into one manageable monthly payment
• Prevents repossession of vehicles and other secured property
• Allows you to keep your home, car and other essential assets

This type of bankruptcy can be a powerful tool for regaining control of your finances without starting over from scratch.

How The Repayment Plan Works

Your repayment plan will last between three and five years, depending on your income and the amount of debt you owe. During this time, you’ll make monthly payments to a court-appointed trustee, who distributes the funds to your creditors. Unsecured debts like credit cards or medical bills may be discharged (eliminated) at the end of the plan.

Frequently Asked Questions

If you’re considering Chapter 13 bankruptcy, you may have questions. Here are some answers.

What is the average payment for Chapter 13 bankruptcy?

It varies based on your income, expenses and debt. Many plans range from $300 to $600 per month, but some are higher or lower depending on your situation.

How much debt is needed to file Chapter 13?

There’s no minimum, but your total debts must fall under certain limits to qualify.

What happens if I can’t pay my Chapter 13 bankruptcy?

If you can’t keep up with payments, you may be able to modify your plan, convert to Chapter 7 or request a hardship discharge. Our lawyers can help you explore your options.

Take The First Step Toward Financial Relief

If you’re struggling with debt but have a steady income, Chapter 13 bankruptcy may be the solution you need to get back on track. We can guide you through every step. Call us today at 757-828-0031 or reach out through our online contact form to learn more.

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