Chapter 13 Bankruptcy

Proposing a re-payment plan.

Under a Chapter 13 Bankruptcy, a debtor proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtor’s future income.


 You can use Chapter 13 to prevent a house foreclosure; make up missed car or mortgage payments; pay back taxes; stop interest from accruing on your tax debt (local, California state, or Federal); keep valuable non-exempt property; and more.


 If you can follow the terms of your repayment agreement, all your remaining dischargeable debt will be released at the end of the plan (typically three to five years). The amount to be repaid is determined by several factors including the debtor’s disposable income as is usually determined as part of the California Means Test.

Must have a regular source of income.

In addition, the total amount paid to creditors under the Chapter 13 plan must also be at least as much as creditors would have received if the debtor filed a Chapter 7 bankruptcy. To file Chapter 13 bankruptcy you must have a “regular source of income” and have some disposable income to apply towards your Chapter 13 payment plan.

Is Chapter 7 or 13 right for me?

Chapter 13 Bankruptcy is generally used by debtors who want to keep secured assets, such as a home or car, when they have more equity in the secured assets than they can protect with their California bankruptcy exemptions. Chapter 13 Bankruptcy is a reorganization whereas Chapter 7 bankruptcy is a liquidation.

A Chapter 13 Bankruptcy allows them to make up their overdue payments over time and to reinstate the original agreement. Where a debtor has valuable nonexempt property and wants to keep it, a Chapter 13 may be a better option. However, for the vast majority of individuals who simply want to eliminate their heavy debt burden without paying any of it back, Chapter 7 provides the most attractive choice.

Not everyone qualifies. We can help you figure it out.

It is important to note that not everyone can qualify for a Chapter 13 bankruptcy and must meet certain criteria before being able to file. If you are considering filing for a Chapter 13 Bankruptcy, the Foothill Law Group is here to advise you through this entire process. Stop drowning in debt and get the fresh start you desperately need. 

To evaluate whether Chapter 13 or Chapter 7 Bankruptcy is right for you, contact the Foothill Law Group today.

  • Yelp
  • LinkedIn
  • Facebook
  • Instagram

© 2020 by Foothill Law Group, P.C. All rights reserved.

Website designed by Level Uno Digital, L.L.C


*The materials contained in this website have been prepared by and/or on behalf of Foothill Law Group, P.C. for informational purposes only. The information contained is general in nature, and may not apply to particular factual or legal circumstances. In any event, the materials do not constitute legal advice or opinions and should not be relied upon as such.

  • Black Facebook Icon
  • Black Twitter Icon
  • Black Instagram Icon