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Chapter 13 Bankruptcy Explained

Filing for bankruptcy can be the solution to your debt problems and help you gain financial freedom. Though, it is never an easy decision to make.

There are two types of bankruptcy available to individuals and families: Chapter 7 bankruptcy and Chapter 13 bankruptcy. To understand the differences between the chapters read our article The Differences Between Chapter 7 and Chapter 13 Bankruptcy.

Chapter 13 Bankruptcy Explained

Chapter 13 bankruptcy creates a re-payment plan that lasts three to five years, depending on your specific situation. Chapter 13 can stop a foreclosure on your home and even give you a chance to catch up on mortgage arrears.

Chapter 13 bankruptcy plans must be approved by the Bankruptcy Trustee and the Bankruptcy Court. It can be complicated. We’ve filed thousands of Chapter 13 cases. When you hire us, you are in experienced and capable hands.

It is our mission to ensure that you understand the power and benefits of Chapter 13 bankruptcy. We’re here to answer all of your questions. Call us right now (912) 351-9000 to schedule a free consultation.

Benefits of Chapter 13 Bankruptcy

  • Stops wage garnishments, stops lawsuits filed by creditors, stops harassing creditor phone calls, and stops automobile repossession.
  • At the conclusion of the Bankruptcy, remaining credit card debt, medical bills, or other unsecured debts, and some tax debts, are discharged (erased).
  • In some cases, allows a homeowner to “lien strip” or eliminate a second mortgage.
  • Creates an opportunity to catch up on missed car payments.
  • Creates an opportunity to catch up on other missed payments, such as back taxes or child support payments.


Chapter 13 bankruptcy might be the solution to your debt problems. However, it requires monthly payments to the Bankruptcy Trustee for three to five years, which can be difficult for some people to manage. Also, depending on your specific case, you may still owe on some debts after bankruptcy, such as student loans.

Filing for bankruptcy will adversely affect your credit score in the short term; however, if you have already fallen behind on paying your debts, your score has likely already decreased.

Qualifying for Chapter 13 Bankruptcy

To qualify for Chapter 13, you must have a steady source of income, such as from a job, self-employment, a business, retirement income, or social security. This is not a requirement if you file for Chapter 7.

At our free consultation we will help you determine which chapter of bankruptcy is right for you.

Costs of Filing Chapter 13 Bankruptcy

Those costs of filing for Chapter 13 include: court filing fees, mandatory credit counseling fees, and attorneys fees. In our district, we have what is called a “no look” fee, meaning that the attorney’s fees are set by the Bankruptcy Court. Since Chapter 13 creates a monthly payment plan, the attorney’s fees can be paid from those payments.

When we meet for a free consultation, we will go over all of the costs together. There will not be any surprise fees or costs down the road.

After Filing for Bankruptcy

Chapter 13 bankruptcy is a powerful tool that can help you save your house, catch up on missed payments, and eliminate unsecured debts like credit card debt.

We are here to help you understand the process and decide if filing for relief under Chapter 13 is the right choice for you and your family. Contact us today to schedule a free consultation.

The Law Offices of Barbara B. Braziel proudly serves Savannah, Richmond Hill, Hinesville, Pooler, Port Wentworth, Tybee Island, Clyo, Ellabel, Midway, Ludowici, Springfield, Pembroke, Brooklet, and Garden City, GA.


We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.


How Will I Know Which Chapter to File? Chapter 7, 11, or 13 Bankruptcy?

With so much misinformation and myths about bankruptcy floating around, it is no wonder people are so confused. Some of our clients come to us feeling overwhelmed by bankruptcy before they’ve even begun the process. Here at the Law Offices of Barbara B. Braziel we strive to make the process smooth for you, and easy to understand.

We will explain the different chapters of bankruptcy and how filing will affect you and your family. When we meet for a free consultation we will go over the pros and cons of the various chapters and help you determine which chapter is best for you.

The “chapters” come from the United States Bankruptcy Code, and the numbers represent the code sections. In a nutshell: Chapter 11 is designed for businesses, and Chapters 7 and 13 are designed for individuals and families.


Chapter 11 Bankruptcy

Chapter 11 bankruptcy is for businesses, including corporations and partnerships. This chapter allows businesses to create a repayment plan to pay back their debts over time. The goal is to get the business solvent and prevent it from shutting down.

In the aftermath of the great recession a number of huge corporations sought Chapter 11 protection. The list included Chrysler filing for Chapter 11 bankruptcy in 2009 and American Airlines filing in 2012. If you’re interested in learning more about business bankruptcy, Business Insider compiled an interesting review of The 11 Largest Bankruptcies In American History.


Chapter 7 Bankruptcy 

Chapter 7 bankruptcy erases credit card debts, medical bills, and other unsecured debts. It is the most common form of bankruptcy for an individual or married couple. Chapter 7 is also the simplest and quickest form of bankruptcy, with the entire process generally taking only four to six months to complete. Most people get to keep most or all of their belongings through the bankruptcy.


Chapter 13 Bankruptcy 

Chapter 13 bankruptcy is similar to Chapter 11, but is designed for people instead of businesses. Chapter 13 allows a debtor to create a three to five year repayment plan to pay back some or all of their debts.

Both Chapters 7 and 13 are powerful tools to help people solve debt problems. Chapter 13 offers the added benefits of allowing debtors to catch up on missed mortgage payments, missed car payments, and missed spousal or child support payments.

To better understand Chapters 7 and 13, read our article The Differences Between Chapter 7 and Chapter 13 Bankruptcy.

If you line in Savannah, GA or the surrounding areas and have more questions about the various chapters of bankruptcy, let’s meet for a free consultation. Please reach out to us at (912) 351-9000 or contact us by filling out this simple web form.


We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.