Chapter 13 is a voluntary repayment plan with federal court protection. In this type of bankruptcy protection you make regular payments under a Chapter 13 Plan. A court order protects you from creditor action of any kind while you are performing under your Chapter 13 plan. Some debts may be discharged entirely, many can be settled for pennies on the dollar. Perhaps most importantly, Chapter 13 will help you catch up on delinquent mortgages, stop foreclosure, prevent vehicle repossessions and stop garnishments. Chapter 13 is incredibly powerful and wide-reaching law.

Much like Chapter 7, when you file for Chapter 13 protection several things happen. First, just as in Chapter 7, the instant your case is filed your property falls under the protection of the bankruptcy courts. This protection trumps any state court rulings or judgments, including wage garnishments. Second, the court appoints a Trustee to your case. The Trustee's most important job is to take your plan payments and disburse them to your creditors according to you Chapter 13 Plan.

Once you have completed a Chapter 13, your credit is wiped clean. Just as in a Chapter 7, since most people considering bankruptcy already have bad credit scores due to delinquent bills, collections and judgments, Chapter 13 can often improve your credit score. Knowing what to do after your case is complete is crucial, and we will help you rebuild your credit.