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A Chapter 13 Bankruptcy is essentially a court supervised partial payment program, which allows debtors to get caught up on their secured debts (usually a mortgage or vehicle) as well as discharge the majority of their unsecured debt. A Chapter 13 is typically used when the debtor does not qualify for a Chapter 7 or the debtor wants save their home or vehicle from foreclosure or repossession. Under a Chapter 13 Bankruptcy, the debtor submits a Plan of Reorganization setting forth the debtor's income and expenses. If the court confirms it, any excess disposable income (if any) is used to pay unsecured creditors. The plan typically last 3 years, but can go as long as 5 years. At the end of the plan all the remaining unsecured debt is discharged, thus providing a similar result as a Chapter 7. Chapter 13 Bankruptcies are more complicated and require far more work than a Chapter 7, so unfortunately they cost more to do. Martin Hancock permits approximately half of its Chapter 13 fees to be financed through the plan interest free. Thus, reducing the amount needed in order to file.

Consider Filing a Chapter 13 When You

• Do not qualify for a Chapter 7 Bankruptcy
• Are facing a mortgage foreclosure on your home
• Are facing your vehicle being repossessed
• Have steady income
• The value of your property exceeds the exemption amounts under Chapter 7 e.g. too much equity in your home or vehicle
• Want to pay back as much money as you can to your creditors
• Are under a lot of stress from creditors