Chapter 13

If you are current on your mortgage or rent, but you have a good job and make more than the average income for a household of your size, you may not qualify for a Chapter 7, but you will instead be able to do a Chapter 13 “Debt Repayment Plan” Bankruptcy.

Chapter 13 provides an opportunity for people with regular income to work things out with their creditors. During the three to five year period you have to repay your debts, you have the protection of the Federal Courts against Sheriff Sales, repossessions, lawsuits, and even phone calls from creditors.

Monthly payments are determined by the amount you can afford to pay after paying necessary living expenses


Or, if you are at risk of losing your home to Foreclosure, and:
• You have regular income,
• You could stay current on your mortgage if the payments on your other debts were
lowered, and,
• You would be able to pay off the past due amount on your mortgage if you could just
spread it over three to five years,

then you may qualify for Court protection from your creditors under a Chapter 13 Debt Repayment Plan.

Please see more information about Chapter 13 under “Frequently Asked Questions”.

If you live in the Allegheny, Armstrong, Beaver, Butler, Clarion, Lawrence, Mercer, or Venango Counties of Pennsylvania and would like more information about chapter 13 - debt repayment, contact us today!