Is Chapter 13 bankruptcy right for you?

Chapter 13 bankruptcy is a way that individuals and businesses can choose to repay some of their unsecured debts. It is different than filing for a chapter 7 bankruptcy since it allows the debtor to keep their belongings.

A chapter 13 bankruptcy takes longer to complete than a chapter 7 bankruptcy. Those who file for this type of bankruptcy use all their excess income to repay their debts. Not all people qualify for or want to file for chapter 7. Chapter 13 is often a better option for their circumstances.

In this video, Attorney B David Sisson explains who may qualify to file for a chapter 13 bankruptcy under the US bankruptcy code.


How to file chapter 13 bankruptcy involves a process of determining if you're eligible. Then, the preparation of the petition and schedules occurs. You must come up with an appropriate repayment plan for your debts that the chapter 13 trustee accepts.

Once the trustee accepts the payment plan, you make payments directly to the trustee. The trustee distributes payments to the creditors. As a chapter 13 debtor, you keep your home, your vehicle, and other belongings while you pay off your debts.

One of the biggest differences between chapter 7 and chapter 13 involves home ownership. If you own a home and foreclosure is a concern, a chapter 13 may allow you to save your home, since repaying what you owe is worked into your payment plan.

If you have a regular income of some kind and have unsecured debt of $400,000 or less, call the Law Offices of B David Sisson now for your free phone consultation: 405-447-2521!