Chapter 13 Bankruptcy

Adjust your debt payments with a manageable repayment plan

What Is Chapter 13 Bankruptcy?

A Chapter 13 filing is intended to adjust the debt payments of an individual or small business with dependable and regular income. While Chapter 7 is preferred by most clients, Chapter 13 bankruptcy offers many advantages in bankruptcy protection.

The adjustment of your debt and the monthly repayment schedule are set out in a Chapter 13 Plan which your Wyoming bankruptcy attorney prepares and files with the Wyoming Bankruptcy Court based on the amount of your disposable income and the types and amounts of debt to be repaid. Typically, only a portion of the unsecured debt is repaid, while “priority” debt, such as child support or taxes, is repaid in full. The monthly payment must be affordable based on your income and current living expenses. No interest or penalties will be added to your debt. The repayment period under the plan may be as short as 36 months or as long as 60 months. After your last payment required by your Chapter 13 Plan, you will be discharged of your debt, even if you have paid less than the full amount owed.

Key Benefits of Chapter 13

  • Stopping collections, suits or garnishments

  • Requiring creditors to file proofs of claim

  • Giving priority to child support or tax debt

  • Affordable monthly payments based on income

  • Prohibiting any additional penalties or interest charges

  • Discharging certain debts that cannot be discharged in Ch. 7

  • Priority debts paid in full before other creditors

  • Payments to non-priority creditors limited to disposable income

Curing Default

If you are behind on your house payments and are being threatened with foreclosure, then Chapter 13 will stop the foreclosure and provide you with the extra time needed to cure or catch up on your past due payments, even without the creditor’s consent.

  • Stop foreclosure immediately

  • Cure past due payments over time

  • Keep your home and equity

  • Cure default on auto, furniture and other secured loans

Reasons to Choose Chapter 13

  • More types of debt are dischargeable than Chapter 7

  • Priority payments on tax debt and child support

  • Marital debt from divorce is dischargeable

  • More control over IRS debt with no accruing interest

  • IRS must accept payment schedule in confirmed plan

The Chapter 13 Process

  • 1

    Consultation & Planning
    We analyze your finances and create a realistic repayment plan based on your disposable income

  • 2

    File Petition & Plan
    Submit your bankruptcy petition and Chapter 13 Plan to the Wyoming Bankruptcy Court

  • 3
    Automatic Stay
    Foreclosure, garnishment, and collection actions stop immediately
  • 4

    Creditors Meeting
    Brief 341 meeting with trustee (we attend with you)

  • 5

    Discharge
    Discharged of your debt after last payment (36-60 months), even if less than full amount owed

Worried About Bankruptcy Myths?

Many people hesitate to file because of common misconceptions. Learn the truth about bankruptcy and discover that it’s designed to help honest, hard-working people get back on their feet.

Can Chapter 13 Save Your Home?

If you’re facing foreclosure, time is critical. Contact us today for a free consultation.