Chapter 13 Bankruptcy FAQ’s

Chapter 13 bankruptcy allows individuals to pay their debts through a structured repayment plan that establishes terms and conditions by which debtors will make monthly payments to creditors for the next three to five years, so they can keep their assets. In comparison, Chapter 7, or liquidation bankruptcy, is an immediate discharge of unsecured debts. Those with limited income can pay off their debts and reset their finances by giving up some of their possessions.

Yes, you can, provided that the trustee approves of your new debt obligation. Furthermore, most lenders require evidence of on-time payments for at least 12 months. You may also need to issue a substantial down payment of at least 20% to be qualified. Having a robust emergency fund savings plan incorporated into your bankruptcy budget can also help increase your chances of obtaining a loan.

During Chapter 13, you can buy a car, but it is a multi-step process. Preparing a down payment can help reduce interest rates or monthly payments on the new vehicle. As you take on a new debt, you will need approval from the trustee. To better secure a success when presenting your case to the trustee, you will need the dealership’s financing deal that details the make, model, and year of the car, along with the loan terms.

When creating a Chapter 13 repayment plan, the first thing to discuss with an attorney is your income, as this will influence the amount of monthly payments and the length of your plan. Other factors that impact the scope and duration of the plan include assets, the nature of each debt, retirement loans, changes in employment status, administrative expenses, and whether any of your creditors object to the plan.

You should disclose to your bankruptcy attorney if you are facing other lawsuits while dealing with bankruptcy so that he or she can take steps toward protecting your future assets. Notify your attorney in writing if you receive new assets during the Chapter 13 bankruptcy process. As courts want to ensure your current debts are paid off before you spend any windfalls, talk to your attorney first before spending any money to avoid jeopardizing your discharge

The Sadek Bankruptcy Law Offices Difference

Display Google Ratings

Find Sadek Bankruptcy Law Offices Near You

Center City Philadelphia, PA

1500 JFK Boulevard, Suite 220
Philadelphia, PA 19102
(215) 545-0008
See On Google Maps

Northeast Philadelphia, PA

2375 Woodward Street, Suite 105
Philadelphia, Pennsylvania 19115-5119
(215) 545-0009
See On Google Maps

Delaware County, PA

Victoria Mills Business Center
1489 Baltimore Pike #218
Springfield, Pennsylvania 19064-3968
(610) 432-3111
See On Google Maps

Montgomery County, PA

630 Freedom Business Center Drive, Suite 36
King of Prussia, Pennsylvania 19406-1331
(610) 951-4655
See On Google Maps

Bucks County, PA (Trevose)

5 Neshaminy Interplex, Suite 205
Trevose, Pennsylvania 19053-6932
(215) 468-3328
See On Google Maps

Egg Harbor, NJ

6712 Washington Avenue Suite 209B
Egg Harbor, NJ 08234
(609) 205-6200
See On Google Maps

Mount Laurel, NJ

701 East Gate Drive, Suite 129
Mount Laurel, New Jersey 08054-3924
(856) 343-4068
See On Google Maps

Moorestown, NJ

302 North Washington Avenue, Suite 101 West
Moorestown, New Jersey 08057-2448
(856) 343-4068
See On Google Maps

Cherry Hill, NJ

One Mall Drive, Suite 415
Cherry Hill, New Jersey 08002-2101
(856) 890-9003
See On Google Maps