Chapter 13 Bankruptcy

In a Chapter 13 The Harrington Law Firm has practiced bankruptcy law in Louisiana for more than 30 years, working to bring peace of mind to Louisiana residents. case, an individual with regular income repays all or a portion of his or her debts over a three-to-five-year period through a monthly payment plan approved by the Bankruptcy Court. For that reason, a Chapter 13 case is sometimes referred to as a “wage-earner plan.” Also, many sole proprietors file Chapter 13 plans to restructure how their debts are repaid. The Chapter 13 Trustee does not take possession of non-exempt assets but supervises the case and administers the payments to creditors under the Chapter 13 plan. The Harrington Law Firm has practiced bankruptcy law in Louisiana for more than 30 years, working to bring peace of mind to Louisiana residents. In exchange for these payments, you can keep property you have which a trustee would sell from under you in Chapter 7. So in Chapter 13, you can:

Save your house
Keep your vehicle
Keep your land
Save your business

The amount of your payments and the length of your plan depends on a variety of considerations. One such consideration is how much extra money you have left over every month after you pay your basic living expenses. A second factor is how far behind you are on your secured debts (e.g., home loans, vehicle loans, etc.).

The most common reasons for client bankruptcy are (a) loss of employment; (b) lengthy illness and large medical bills; (c) death of a spouse; (d) separation, divorce and marital issues; and (e) large unexpected expenses.