New Tomorrow Law, APC

Stop Creditors From Calling

Get A Fresh Start

Feel In Control Of Your Future

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy, often known as “reorganization bankruptcy,” is a legal process designed to help individual debtors create a manageable repayment plan for their debts. Here’s a breakdown of Chapter 13:


  • Chapter 13 bankruptcy is available to individuals with a regular income who have enough disposable income to repay some or all of their debts through a court-approved repayment plan.
  • Unlike Chapter 7, there is no strict income limit, but your debts must fall within certain thresholds.

Protection of Assets:

  • One of the key benefits of Chapter 13 bankruptcy is that it allows individuals to keep their property while catching up on missed payments over time.
  • You can prevent foreclosure or repossession by including past-due mortgage or car payments in your repayment plan.

Types of Debts Addressed:

  • Chapter 13 bankruptcy can help with a wide range of debts, including mortgage arrears, car loans, tax debts, past-due child support or alimony payments, and some debts included in a divorce.
  • You’ll make regular payments to a bankruptcy trustee, who will distribute the funds to your creditors according to the terms of your repayment plan.

Types of Debts that Cannot Be Discharged:

  • Similar to Chapter 7, certain debts cannot be discharged in Chapter 13 bankruptcy, such as current child support, alimony, most tax debts, and student loans (in most cases).
  • However, Chapter 13 may allow you to repay these non-dischargeable debts over time through your repayment plan.

Your choices are clear...

Chapter 13 bankruptcy offers individuals a structured way to regain control of their finances while keeping their assets intact. By working with a bankruptcy attorney to develop a feasible repayment plan, you can take steps toward a more stable financial future and ultimately achieve debt relief. If you’re considering filing for bankruptcy, contact New Tomorrow Law, APC® to let us help you navigate the process effectively and understand how it may impact your financial future.

Scroll to Top