Chapter 13 Bankruptcy


Our Chapter 13 Bankruptcy Attorneys are here to help | Serving Benton Arkansas and surrounding areas.

A Chapter 13 bankruptcy is one in which you are able to keep non-exempt, secured property and repay all or part of the debt for that property. In a Chapter 13, a debtor proposes a plan to pay for certain debts in a three to five year period. A Chapter 13 filing stops all creditors from foreclosing on your home, repossessing your property, suing you for debts, and garnishing your wages. In fact, individuals will have no direct contact with creditors during the entire life of a Chapter 13 plan.

A Chapter 13 plan is designed to restructure and reorganize your debts into one affordable monthly payment. A Chapter 13 plan is similar to a consolidation loan in which non-exempt, secured debts are consolidated into one payment made to the Trustee, who then distributes payments to creditors.

Chapter 13 is only available to an individual. It offers individuals several advantages over a Chapter 7 filing. Perhaps most significantly, Chapter 13 offers individuals an opportunity to save their homes from foreclosure and cars from repossession. It can also save other secured property from repossession, such as furniture, appliances, ATVs, and boats.

Persons with unsecured debts, such as credit card debts (with limited exception), are personally relieved from having to pay for those debts. Finally, the debtor chooses whether to keep property or surrender it back to the creditor. Property kept by the debtor is repaid. However, property surrendered by the debtor is treated like unsecured property and the debtor does not have to pay for the surrendered property.

The decision about whether to file for bankruptcy is a hard one. The Lancaster Law Firm is here to help. We will answer all your questions about bankruptcy and tell you whether Chapter 7, 11, or 13 is right for you. Call us today to schedule a meeting with one of our attorneys.

Frequently Asked Questions Regarding Bankruptcy

The Dangers of Banking with a Creditor Bank During a Bankruptcy Proceeding

If you are in debt and thinking of filing or have filed for bankruptcy protection, you need to stop and think about whether you owe a bank any money as a creditor. If the answer is yes, then you MUST ask yourself a second question. Do you hold any types of accounts at that bank?…
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Emergency Petitions for Bankruptcy

A typical Chapter 7 or Chapter 13 petition requires you to submit well over 50 pages of documentation, including: your schedules (which includes a detailed budget, a list of all creditors including addresses and account numbers, a detailed list of assets with estimated valuations, detailed information about sales, transfers, losses and recent payments to creditors,…
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Bankruptcy and Social Security Overpayments

A question we get a lot is whether Social Security disability overpayment is dischargeable in bankruptcy. The short answer to this is “yes,” a Social Security overpayment is treated like any other unsecured debt. There are exceptions to the dischargeability of a particular debt under Section 523 of the Bankruptcy Code and exceptions to the…
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Chapter 7 Filings, Secured Debts, and Default Judgments

Chapter 7 bankruptcy allows you to wipe out unsecured debt– credit card bills, medical debt and other signature loans. However, secured debt–loans backed by collateral such as mortgages, car loans, or furniture, may be treated differently. Secured loans actually contain two different kinds of obligations. First, there is the obligation that you, personally, will pay…
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