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What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is a legal process designed to help individuals who have a regular income and need to "reorganize" their debts. Unlike Chapter 7, the process under a Chapter 13 takes longer.


The debtor proposes a repayment plan to the Court on how they will pay back the creditors over a set period (e.g. 3-5 years). Payments will be made to the court-appointed trustee who then distributes funds to the creditors.


There are debt limits for Chapter 13 including:

  • As of 2024, unsecured debts must be less than $465,275.00

  • As of 2024, secured debts must be less than $1,395,875.00

  • Debtor will need to receive credit counseling by an approved agency


Unlike Chapter 7, Chapter 13 typically allows you to keep your property as long as you continue your repayment plan.


The petition will provide the "automatic stay" which will help avoid foreclosure or repossession until debts are paid.


At the end of the repayment period, remaining eligible debts may be discharged by the Court.



If you have any questions, please reach out to SNIDER LAW PLLC today!



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