Starting Fresh With A Chapter 13 Bankruptcy

If you are not eligible for Chapter 7 or if you cannot get the relief you need and desire through Chapter 7, then a Chapter 13 repayment plan may be an option. A Chapter 13 bankruptcy can mean the difference between a life full of stress and a life free from stress. At the Lanser Law Office in Waukesha, Wisconsin, we can help.

Our job is to recognize potential issues before they become even larger problems, and then take steps to remedy the problem or at least make you aware of it. We do not want you to be blindsided during the bankruptcy process. Contact us at 262-522-2280 to get the fresh start you need and deserve.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy is another option for individuals who might not otherwise qualify for a Chapter 7 bankruptcy. In a Chapter 13, an individual has the opportunity to propose a plan to repay all or a portion of their debts over time, while still being protected from the collection efforts of creditors.

Although you will need to adhere to a payment plan, the stress of constant creditor calls and the deluge of final notices in your mailbox will cease. And, in the process, you may be able to reduce the amount you owe. This can ease your stress and alleviate the emotional toll that bankruptcy often takes on individuals and families.

The Difference Between Chapter 13 And Chapter 7 Bankruptcy

Unlike a Chapter 7 bankruptcy, where the debtor seeks to discharge debts entirely, Chapter 13 calls for the repayment of debt over a 36- to 60-month term.

The amount that is paid and the length of the repayment plan is based on a variety of factors, including the nature of the debt, the debtor's income and their ability to pay. If you successfully complete the plan, the unpaid portion of most unsecured debt is discharged.

There are exceptions for certain debts, including some taxes, student loans, child support, maintenance, restitution, criminal fines, fraud and injury caused by drunk driving.

Advantages Of Chapter 13 Bankruptcy

Chapter 13 has several advantages in that it offers an opportunity to resolve certain debt situations in a way that is not otherwise available in Chapter 7. These include:

  • Non-dischargeable debts — Certain debts that are nondischargeable in a Chapter 7 may be discharged in a Chapter 13 as long as the debtor successfully completes their repayment plan. Note that even if a debt is nondischargeable in a Chapter 13, the creditor will still be stayed from collecting during the pendency of the Chapter 13 case.
  • Mortgage arrears — If you have fallen behind on your payments, Chapter 13 can be used to catch up on past payments and enable you to keep your home even if a foreclosure has already been commenced.
  • Avoid repossession — Chapter 13 can also be used to avoid repossession of a vehicle. Arrearages on vehicle payments owed can be repaid over time so that the car owner can avoid repossession.
  • Nonexempt possessions — If you have assets that would otherwise be lost in a Chapter 7 because they are not covered by the bankruptcy exemptions, you may be able to keep them by paying their value into your Chapter 13 bankruptcy plan.

Let a lawyer at Lanser Law Office educate you about the advantages and disadvantages of Chapter 13 bankruptcy.

Our Chance To Help You

At Lanser Law Office, we take a personalized approach to your Chapter 13 bankruptcy case. We can help you develop a strategy to solve your financial problems. Call our firm today at 262-522-2280 or email us using our contact form.