Chapter 13
Chapter 13, also called as "reorganization," offers immediate protection from collection, repossession of property, and foreclosure. In a Chapter 13 bankruptcy, we will develop a repayment plan in which you will make just one monthly payment to the bankruptcy trustee, who in turn pays your debts according to the terms of the plan. In some cases it is possible to structure a plan in which you repay only a fraction of your unsecured debts.
A homeowner who is behind on a mortgage and facing foreclosure may want to consider Chapter 13, which allows up to five years to repay any missed mortgage payments.
Chapter 13 is also more flexible than Chapter 7. For instance, if your financial circumstances change and you can't keep up with the plan, we can ask the judge to modify it, or later convert your case to a Chapter 7.