Chapter 13 Bankruptcy

Chapter 13 Bankruptcy

Chapter 13 is a delayed “fresh start” bankruptcy.  For those individuals who cannot qualify for a Chapter 7, they may qualify for Chapter 13. Only individuals can file a Chapter 13 bankruptcy, corporations and partnerships are not “individuals.”  However, a sole proprietorship business may qualify.  As of the filing date, the debtor must owe less than $383,175 of liquidated, noncontingent unsecured debts, and less than $1,149,525 of liquidated, noncontingent secured debts.


chapter 13 Chapter 13 permits you to reorganize your debt and wipe out some of the debt which you cannot afford to pay.  THE MOST IMPORTANT THING about a Chapter 13 is that you can keep your real property and all your assets.  While the repayment plan depends on your Regular Income, Frazee Law Group has been able to organize repayment of your debt in such a manner that if you have insufficient income, you may be able to secure a family contribution to allow you to get back on your feet.  Regular Income may come from any legitimate source – e.g., wages, profits from self-employment, rents and investment income, social security benefits, retirement benefits, unemployment compensation and workers’ compensation awards.

The filing of a Chapter 13 bankruptcy will stop the foreclosure sale and allow the debtor 3 to 5 years to repay all the arrears. In addition, you may be able to strip the second and/or third deed of trust on your home, depending on the value of your home.

Some individuals and small business owners file Chapter 13 because they can only afford to repay some, but not all of their debt.  Rather than wiping out all of their debts in a Chapter 7, Chapter 13 allows them to reorganize and pay a certain percentage of their debt over a period of 3 to 5 years.  The unpaid balance is discharged after the payment plan is completed.  The Chapter 13 proceeding is more complex than a Chapter 7 and that is why attorneys must charge more for a Chapter 13.

Foreclosure and Chapter 13


If you have received a foreclosure notification or suspect that you may be facing foreclosure, it is possible to deal with the situation and potentially put an end to the foreclosure by taking immediate action.  Through a Chapter 13 filing, you may be able to stop foreclosure and help you retain your home.  As an experienced bankruptcy attorney, I can review your situation and determine the type of bankruptcy that is right for you.

Frazee Law Group permits the client to make a “downpayment” and pay the balance in the reorganization plan.

Chapter 13 Bankruptcy starts at $1500.

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