Chapter 13 Bankruptcy
6127 Green Bay Rd.
Suite 101
Kenosha, WI 53142
Tel: 262.764.2022
Fax: 262.764.2043
Kryshak Law Office, LLC
Kryshak Law Office, LLC
Debt Repayment Bankruptcy
What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy is a debt repayment plan in which you repay your debts,
without interest, over a 3 to 5 year period. All debts are consolidated and you make
payments (usually monthly) to a trustee, who then issues payments to various creditors.

The amount of the payments and the length of the plan are determined by your income
and expenses. If you are not required to repay all debts in full, the remaining debts at the
end of the repayment plan are discharged. However, just as with Chapter 7 bankruptcy,
any debt eliminated after the plan is complete must be eligible for discharge. Certain
debts such as student loans, recent tax debt, and child or spousal support cannot be

Why file Chapter 13 bankruptcy instead of Chapter 7?

There are a number of reasons that one may file Chapter 13 bankruptcy instead of
Chapter 7. Some people simply make too much money and do not meet the income
requirements to qualify for a Chapter 7. Some people may have filed a previous Chapter
7 bankruptcy within the past 8 years and thus are not eligible to file another Chapter 7
at this time.

Other people file Chapter 13 because they are behind on their mortgages or car loans.
Many of these people are facing foreclosure or repossession of their property. Chapter
13 allows one to keep up with current payments and make monthly payments toward
the past-due balances. This allows the debtor to keep his or her property and get current
on the mortgage or car payments.

People may also file Chapter 13 because of tax debt. Certain tax debt is not
dischargeable in a Chapter 7 bankruptcy. Chapter 13 allows the debtor to repay the tax
debt over a 3 to 5 year period.

Another reason one may choose to file Chapter 13 bankruptcy over Chapter 7 is to
keep non-exempt property. Some people have a large amount of valuable property. For
these people, filing Chapter 7 may require the debtors to give up some of the property.
Thus, instead of giving up the property, the debtors choose to file a Chapter 13
repayment plan and keep all of the property.

Do I qualify for Chapter 13 bankruptcy?

In order to qualify for Chapter 13 bankruptcy you must have a regular source of income
that allows you to make the required Chapter 13 payments to the bankruptcy trustee.
In addition to the Chapter 13 payments, you must also have enough money to cover
necessary living expenses.

If you do not have the necessary income to qualify for Chapter 13 bankruptcy, you
may still be able to file Chapter 7.

Are the protections of Chapter 13 bankruptcy similar to those under Chapter 7?

The protections under Chapter 13 are essentially the same as those under Chapter 7.
Just as with Chapter 7 bankruptcy, the automatic stay goes into effect as soon as the
Chapter 13 is filed with the court. The automatic stay serves to stop creditor
harassment, stop creditors from taking any action to collect on the debt, and to stop
foreclosure, repossession, and other types of lawsuits. In addition to these protections,
there are some other advantages of Chapter 13 as discussed above as to why one may
file Chapter 13 instead of Chapter 7.

What are the fees for Chapter 13 bankruptcy?

The fees for Chapter 13 bankruptcy are higher than the fees for Chapter 7. This is
because the attorney representation lasts throughout the 3 to 5 years of the repayment
plan. Both Chapter 7 and Chapter 13 bankruptcy are technical and complex, and the
decision to file either type of bankruptcy is not easy. Kryshak Law Office offers free
initial consultations to allow you to explore all of your options to your specific
situation so that you are able to make an informed decision. In addition, Kryshak Law
Office offers low fees and payment plans to make the process easier and more
manageable during this difficult time.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.  This web
site is designed for general information only.  The information contained on this site should not be viewed as
formal legal advice nor the formation of a lawyer/client relationship.

Copyright © 2009 Kryshak Law Office, LLC.  All rights reserved.