Chapter 13 is part of federal law that protects a person while they attempt to repay some or all of their debts over a period of time. 

A person who files under Chapter 13 is called a “debtor.”  Generally, a debtor does NOT have to pay all his/her debts in Chapter 13; debtors generally just have to do the best they can based on their assets, income and reasonable expenses. 

In a Chapter 13 case, the debtor submits to the Court a “Plan” for paying some or all of the debtor's debts over a period of three years (and up to five years, if needed).  The debtor’s payments are generally based on the debtor’s income and reasonable expenses.  Once the payment is determined, the debtor makes the monthly payment for the length of the plan.  During the period of the plan, debtors continue to pay their own living expenses.

During the plan period, the plan payments are paid to a person called the “Chapter 13 Trustee.”  The Trustee collects the money, takes a small fee, and distributes the balance to creditors as indicated in the approved Plan. 

The Chapter 13 Plan is complete when the debtor makes all the payments required under the plan.  When that happens, with only a few exceptions, the debtor is no longer personally obligated (“discharged”) for any balance left on any debts not paid in full through the plan.

Generally, obtaining a “discharge” is one of the major reasons why people file for Chapter 13 relief.  A “Discharge Order” is an actual Order of the Bankruptcy Court that, when entered, releases a debtor from the personal obligation to repay the debtor's discharged debts.  The “Discharge Order” also orders creditors to not attempt to collect on a debt that has been discharged. 

Questions?

These are a few of the most common questions we hear about the CH13 process:.

• What is the filing fee?
• What is a Discharge?
• Who is eligible?
• When am I protected?
• How much do I pay back?
• Do creditors have to agree?
• What are my Payments?
• When are Payments due?
• What is NOT covered?
• Do I have to go to Court?
• What's different 7 from 13?
• Why do 13 over 7?
• Will I loose my Property?
• Do I have to list everything?
• Who will know?
• What happens to my Credit?