Free Case Evaluation

 
 
X Close
Phone Call Us 414-326-9231
608-260-7133
Toll Free 866-678-9352
Text Us 414-277-7742
You can also feel free to text us at 414-277-7742 to set up your FREE appointment with our attorneys today

An overview of a Chapter 13 bankruptcy filing

The term “bankruptcy” is likely one that many are familiar with. Those individuals may not be aware of what filing for bankruptcy entails however. For example, there are different chapters under which a consumer might file. One of those is Chapter 13.

In a Chapter 13 filing debt is not immediately discharged. Instead, consumers enter into a repayment plan that can last between three and five years. In the course of the repayment plan, which is overseen by a bankruptcy trustee who is court-appointed, creditors receive payments on the debt owed. The trustee is usually responsible for disbursing those payments to the creditors after first collecting it from the debtor. At the end of the process, any qualifying remaining debt is discharged.

This chapter is not always appealing to filers. This is because of the length of time it usually takes. For people considered “financially fragile,” this can be problematic. Sometimes they are unable to complete the process and end up converting to a Chapter 7 bankruptcy instead.

Others find it beneficial to file under Chapter 13 because it allows them to keep their assets such as homes and cars. This may be particularly appealing to those who have young children and want to provide a sense of continuity. In addition, as is the case with the other bankruptcy chapters, filing stops creditor harassment and any pending foreclosure actions.

Whether it is Chapter 13 bankruptcy or another chapter is right for you, the first step is nonetheless the same, consulting with a bankruptcy lawyer.

Source: Fox Business, “Chapter 13 Bankruptcy: How it Works,” Susan Ladika, May 9, 2013

No Comments

Leave a comment
Comment Information

Contact Our Milwaukee Law Firm

Reach Miller & Miller Law, LLC, online or call us at 414-326-9231 to schedule a free initial consultation. Our law office also provides Spanish language services. Se habla español.

To schedule an initial consultation, call 414-326-9231 or contact Miller & Miller today.

Free Case Evaluation

* indicates required field

 
 

Milwaukee Office
735 West Wisconsin Avenue
Suite 600
Milwaukee, WI 53233

Phone: 414-326-9231
Fax: 414-277-1303
Milwaukee Law Office Map

Kenosha Office
6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Law Office Map

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Law Office Map

Madison Office
2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Law Office Map