Chapter 13 bankruptcy is designed for individuals with regular income who either make too much income to qualify for a Chapter 7 and/or would prefer to pay some or all of their debt in installments over a period of 3-5 years. This is an option that is often undertaken by families facing foreclosure of a home with significant equity. One is only eligible for Chapter 13 if his debts do not exceed certain dollar amounts set forth in the Bankruptcy Code, but most meet these eligibility requirements. Under Chapter 13, one must file with the court a “Chapter 13 Plan” to repay creditors all or part of the money that is owed to them from future earnings. The period allowed by the court to repay debts may be 3-5 years, depending upon the debtor’s income and other factors. The court must approve a Plan before it can take effect. After completing the payments under a Plan, a debtor’s debts are generally discharged.
Call us at (703) 548-3900 or contact us online. We are often able to answer questions by telephone or email within 24 hours, and we are always willing to meet with you at our office conveniently located near Tysons Corner Mall in Fairfax County, Virginia.