Chapter 13

It can take three to five years to complete a Chapter 13 plan and its payments, but this is a beneficial opportunity for individuals or couples with a sufficient income to complete a plan. Having too much income to qualify for Chapter 7 is not the only reason you might file Chapter 13. Other reasons include:

Foreclosure – Chapter 13 is the only way to stop foreclosure and keep your house in a bankruptcy. You must have sufficient income to afford the payments.

Tax Debt – If you have taxes that are not dischargeable in Chapter 7, you can repay them in a Chapter 13 plan. You’ll often have 5 years to do it and avoid garnishment, levy, and liens.

Child Support Arrears – If you have back child support, it is not dischargeable, but can be repaid in a Chapter 13 plan.

Divorce Debt – If you were ordered to pay joint debt in a divorce, a Chapter 7 will not be effective.   But those may be discharged in Chapter 13.

Repossession – If you just a vehicle repossessed and it has not gone to auction yet, Chapter 13 may allow you get that vehicle back and repay the arrears through the plan. However, there is only small window of time after the repossession to get the case filed and attempt this.

Traffic Fines – If you have excessive fines and fees owed on moving violations or a suspended license, you are able to get your license back immediately and pay or discharge the fines in the Chapter 13 depending on your situation.