A Chapter 13 Bankruptcy is designed for persons who want to and can afford to pay some or all of their debt.  Most Chapter 13 plans last 3-5 years.  When you file a Chapter 13, interest and collection fees on most of your unsecured debts stop accumulating.  If you have not paid the unsecured debts by the time your plan is finished, the remaining balances are in most cases discharged.*   In order to have your Chapter 13 plan approved, you must be able to establish a regular source of income.

You will want to consider filing a Chapter 13, if you are behind on your house or car payments; or you have valuable property you might lose by filing a Chapter 7; and you can afford to make partial payments to your creditors. 

*Some debts that are not dischargeable in a Chapter 7 will be dischargeable in a Chapter 13.   Please call my office for more detailed information.

 Debts that are not discharged in a Chapter 13:* 

1. Debts incurred through fraud, such as lying about your income on a credit application;
2. Child and spousal support;
3. Most Taxes;
4. Most Student Loans;
5. Debts that you forgot to list on your bankruptcy papers;
6. Debts for personal injury and death caused by your driving a motor vehicle while intoxicated;
7. Debts you never intended to pay back (you took on the debt near in time to filing bankruptcy, you took a cash advance and never paid any money back, debt taken on after meeting with a bankruptcy attorney);
8. Debts for personal injury incurred through willful or malicious harm; and
9. Criminal fines and penalties.

There are other debts that may not be dischargeable.  Consult your attorney to see whether a specific debt is dischargeable.  No attorney should every guarantee the discharge of a specific debt.

*Some debts that are not dischargeable in a Chapter 7 will be dischargeable in a Chapter 13.   Please call our office for more detailed information.