Chapter 13 Bankruptcy Lawyers

What Is Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy is generally called the “Wage Earner’s Plan,”. It is a specific legal process designed to help individuals with a regular income who are willing to pay off their debts over time, rather than opting for liquidating their assets. Unlike Chapter 7, Chapter 13 allows you to keep your property (such as your home or car) by implementing a court-approved repayment plan, lasting generally three to five years. 

Key Features Of Chapter 13 Bankruptcy

Chapter 13 contains a collection of specific legal tools that are specific to this chapter and not available in other forms of bankruptcy, making it an ideal choice for homeowners and those with valuable assets:

• The Repayment Plan: You make one consolidated monthly payment to a court trustee, who then distributes the funds to your creditors.
• Foreclosure Prevention: Filing immediately stops foreclosure proceedings and allows you to cure delinquent mortgage payments over time.
• Asset Protection: You can keep non-exempt property (like a luxury car or second home) as long as you pay its value to creditors through your plan.
• Lien Stripping: In some cases, you can remove "underwater" second mortgages or home equity lines of credit, reclassifying them as unsecured debt.
• Co-Signer Protection: The "co-debtor stay" protects friends or family members who co-signed your loans from collection efforts during your plan.

Primary Laws Governing Chapter 13

Chapter 13 is a linear and strictly regulated U.S. Bankruptcy Code, which contains multiple laws, such as:

• 11 U.S.C. § 109(e): Sets the strict debt limits for eligibility. As of 2025, individuals must have less than approximately $2.75 million in combined secured and unsecured debt to qualify (this limit is adjusted periodically for inflation).
• 11 U.S.C. § 1322: Governs the contents of the repayment plan, including the requirement to pay all "priority claims" (like taxes and child support) in full.
• 11 U.S.C. § 1325: The "confirmation" statute, which requires that you pay all your "disposable income" into the plan for the benefit of unsecured creditors.

When To Hire A Chapter 13 Lawyer?

Chapter 13 is highly complex; it is more complicated than Chapter 7, and individuals face a higher failure rate when filing without an expert attorney. You should seek an expert legal counsel if:

• Facing Foreclosure: Your bank has initiated foreclosure, and you need an immediate legal stay to save your home.
• Ineligible for Chapter 7: You earn too much money to pass the "Means Test" but still cannot handle your debt load.
• Protecting Assets: You have significant equity in your home or expensive assets you do not want to lose in a liquidation sale.
• Tax Debt: You owe significant back taxes to the IRS that you cannot pay immediately, but could pay over five years.
• Prior Bankruptcies: You have filed for bankruptcy in the past few years and need to know if you are eligible to file again.

How To Find The Best Chapter 13 Bankruptcy Lawyer?

Finding an expert Chapter 13 Bankruptcy lawyer is a big task. But with the help of our legal directory, Legably, you can see the best Chapter 13 attorney for your restructuring needs in a short time. Our comprehensive legal directory allows you to search for attorneys in the United States based on their expertise. You can search with terms like “Consumer Bankruptcy” or “Chapter 13,” and then filter results by your location to get a customized list of expert Chapter 13 Bankruptcy lawyers for your case.

What Questions Should I Ask the U.S. Chapter 13 Attorney?

To ensure you and your attorney are on the same page, asking the right questions is crucial. These questions will help you build rapport.

• "Do I meet the debt limits and income requirements for Chapter 13?"
• "Based on my income, will my plan last for three years or five years?"
• "How much will my estimated monthly plan payment be?"
• "Can you help me strip the lien from my second mortgage?"
• "What happens if I lose my job and can no longer make the plan payments?"