Chapter 13 Bankruptcy

If you have fallen behind on a mortgage or car loan but have steady income, Chapter 13 bankruptcy may let you keep the property and repay what you owe over time. A bankruptcy lawyer can build a repayment plan that fits your budget and stops foreclosure while the plan runs.

Stop Foreclosure

Repay Arrears Over Time

Keep Your Property

Free Case Evaluation

    HOW CHAPTER 13 BANKRUPTCY WORKS

    Chapter 13 bankruptcy is a reorganisation case. Instead of liquidating assets, you commit your disposable income to a court-approved repayment plan that typically runs three or five years.

    The plan lets you cure arrears on secured debts. Missed mortgage or vehicle payments are spread across the life of the plan while you keep making the regular monthly payment going forward.

    Unsecured creditors are paid whatever your budget supports — sometimes a fraction of the balance. Qualifying unsecured debt remaining at the end of the plan is discharged.

    Chapter 13 also suits filers who do not pass the means test, who have non-exempt equity they want to protect, or who need to repay priority debt such as recent taxes over time.

    Curing Mortgage Arrears
    Chapter 13 stops a foreclosure sale and lets you repay the missed payments through the plan while staying in the home.

    The Repayment Plan
    A three or five year plan set by your income and household size. The trustee distributes one monthly payment to your creditors.

    Lien Stripping
    Where a second mortgage or HELOC is wholly unsecured by the home's value, Chapter 13 may allow that lien to be stripped and treated as unsecured debt.

    Priority and Tax Debt
    Recent income taxes and support arrears that cannot be discharged can be repaid in full through the plan without further collection pressure.

    image (9)

    THE CHAPTER 13 PROCESS

    1

    Consultation

    Review income, secured debts and arrears to establish whether a Chapter 13 plan is workable and affordable.

    2

    PLAN DESIGN

    Build the repayment plan — plan length, monthly payment, treatment of the mortgage, vehicles, taxes and unsecured debt.

    3

    FILING & CONFIRMATION

    File the case to trigger the automatic stay, begin plan payments, attend the 341 meeting and obtain plan confirmation.

    4

    COMPLETION & DISCHARGE

    Complete the plan payments, finish the debtor education course, and receive a discharge of remaining qualifying debt.

    Why Clients Choose Our Firm

    • Free initial consultation
    • Experience building confirmable Chapter 13 repayment plans
    • Foreclosure and arrears handled with urgency
    • Realistic monthly payments based on your actual budget
    • Support through the full length of the plan

    CHAPTER 13 BANKRUPTCY FAQ

    Meet Your Debt Relief Attorney

    Melanie Tavare

    Melanie Travare

    Principal Attorney & Founder

    Melanie Tavare represents homeowners and wage earners across the East Bay in Chapter 13 bankruptcy. She designs repayment plans that stop foreclosure, cure arrears and protect property, then supports clients through to plan completion.

    Callbar Member

    LEGAL AND FINANCIAL RESOURCES

    Timing

    U.S. Bankruptcy Court — Chapter 13 Basics
    https://www.uscourts.gov/services-forms/bankruptcy

    Timing

    U.S. Trustee Program — Means Testing
    https://www.justice.gov/ust/means-testing

    Timing

    Consumer Financial Protection Bureau (CFPB) — Mortgages
    https://www.consumerfinance.gov/consumer-tools/mortgages/

    Timing

    National Foundation for Credit Counseling (NFCC)
    https://www.nfcc.org/