Michael D. Carper, Attorney at Law

A Chapter 13 filing may be the preferred method for consumers with assets they don’t want to lose, and willing to retire as much of their debts as possible, but under a less-pressured structure. Some debt balances may be partially discharged, and the filer agrees to a monthly payment to the trustee for distribution to the remaining creditors.

Chapter 13 bankruptcy, also called a wage earner's plan, is quite different from Chapter 7 bankruptcy (which wipes out most of your debts). In a Chapter 13 bankruptcy, you use your income to pay some or all of what you owe to your creditors over time. Not everyone qualifies for Chapter 13, however -- and some debtors would be better off filing for Chapter 7.

Any bankruptcy is a serious mark against your credit record, but Chapter 13 filings may be perceived as slightly less serious than Chapter 7 filings since you are exhibiting an interest in retiring your debts.

Chapter 13 bankruptcy allows you, if you have a regular income and limited debt, to keep property, such as a mortgaged house or car, that you otherwise might lose. In Chapter 13, the court approves a repayment plan that allows you to pay off a default during a period of 3 to 5 years, rather than surrender any property.

When faced with such a serious financial problem that you feel a need to file for bankruptcy, perhaps the smartest and safest thing to do is to let the professionals guide you through the rough waters.  Please feel free to contact me for a free initial consultation to determine if bankruptcy is right for you.  If necessary, I can help guide you through the bankruptcy process.