Chapter 13 Bankruptcy

The bankruptcy laws provide an opportunity for a fresh start to those individuals whose financial difficulties have left them unable to pay their bills and have put them at risk of losing their homes, vehicles or other property. Obtaining a discharge of your pre-bankruptcy debt is at the core of that fresh start.

Chapter 13 bankruptcy is a debt adjustment procedure and reorganization. Upon the filing of a Chapter 13 bankruptcy petition, a Plan is proposed by the debtor that provides for repayment of a portion of the debtor's debts over a three to five year period from future earnings. The Bankruptcy Court appoints a Chapter 13 Trustee to administer the bankruptcy case. Once the Chapter 13 Plan is confirmed, the Trustee receives payments from the debtor and disburses them to creditors. During this time the law forbids and "automatically stays" (stops) most collection actions and/or foreclosure proceedings against the debtor or the debtor's property.

Once the Chapter 13 case has been fully administered, a discharge of debts is entered. Some debts that may not be discharged could include alimony, child support, certain taxes, some educational loans, personal injury or deaths caused by driving while under the influence of drugs or alcohol, or debts resulting from a crime.

You are not alone. You have rights. The laws can protect you... and so can we.

The laws of a Chapter 13 bankruptcy are complex. An experienced bankruptcy lawyer can help you keep your property and obtain a discharge. A consultation with an experienced attorney at Butler & Butler will provide you with answers to your questions, valuable knowledge of your options, and the confidence of having expert representation to solve financial problems when, or before, a crisis situation arises.

Butler & Butler, LLP, is a North Carolina law firm that focuses primarily on bankruptcy law. Contact our law firm if you have any bankruptcy or debt-relief questions.

Chapter 13 Bankruptcy - U.S. Court