Attorney Marie K. Spring


Chapter 13

The Debtor in a Chapter 13 bankruptcy uses excess income, after paying all necessary monthly living expenses, towards their debts over the course of three to five years, depending on the debtor's income.

Unsecured debt in a Chapter 13 may be adjusted, paying only a percentage over three to five years, depending on the Debtor's income.

After completion of all payments, the Debtor receives a Discharge of all debts dischargable under the bankruptcy, giving them a fresh start.

Individuals may use a Chapter 13 proceeding to save their home from foreclosure. You should ask your attorney how this may apply to you.

An individual, even if self-employed or operating an unincorporated business, may be eligible for Chapter 13 relief as long as their unsecured debts are less than $360,475 and secured debts are less than $1,081,400. These amounts are adjusted periodically. A corporation of partnership may not be a Chapter 13 debtor.

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