Save Your Home & Reorganize
Chapter 13 Bankruptcy
Behind on your mortgage? Facing foreclosure? Chapter 13 lets you keep everything you own while reorganizing your debt into affordable monthly payments over 3–5 years.
Behind on your mortgage? Facing foreclosure? Chapter 13 lets you keep everything you own while reorganizing your debt into affordable monthly payments over 3–5 years.
Chapter 13 bankruptcy — sometimes called the "wage earner's plan" — allows individuals with regular income to reorganize their debts into a manageable repayment plan lasting 3 to 5 years. At the end of the plan, any remaining qualifying unsecured debt is discharged.
Unlike Chapter 7, Chapter 13 does not require you to give up any property. Instead, you make monthly payments to a bankruptcy trustee, who distributes the funds to your creditors. The amount you pay is based on your income, expenses, and the types of debt you owe — not the full balance of what you owe.
Chapter 13 is especially powerful for homeowners facing foreclosure. The moment you file, the foreclosure is halted by the automatic stay, and your repayment plan allows you to catch up on missed mortgage payments over the life of the plan while continuing to make regular monthly payments going forward.
If you're facing foreclosure or behind on mortgage payments, Chapter 13 stops the foreclosure and lets you cure the arrears over your plan while keeping your home.
If your income is above the New York median and you don't pass the Chapter 7 Means Test, Chapter 13 is your path to debt relief while keeping everything you own.
Chapter 13 can stop a vehicle repossession, let you catch up on missed payments, and in some cases even reduce the total loan balance through a "cramdown."
Certain tax debts that can't be eliminated in Chapter 7 can be paid off through your Chapter 13 plan — often at 0% interest and without penalties continuing to accrue.
If you own valuable property that might not be fully covered by New York's exemptions, Chapter 13 lets you keep everything by paying the equivalent value through your plan.
If you received a Chapter 7 discharge in the last 8 years and need bankruptcy protection again, you can file Chapter 13 after just 4 years from your prior discharge.
You complete an approved credit counseling course, and we do a thorough review of your income, debts, and assets to determine how much you can afford to pay each month.
We file your petition along with a proposed repayment plan that outlines how much you'll pay each month and how your creditors will be paid. The automatic stay immediately stops all creditor actions, including foreclosure.
About 30 days after filing, you attend a brief meeting with the bankruptcy trustee. We prepare you thoroughly and appear with you. Creditors rarely attend.
The court holds a confirmation hearing to approve your repayment plan. We handle any creditor objections and negotiate modifications if needed. Once confirmed, the plan is binding on all parties.
You make a single monthly payment to the Chapter 13 trustee, who distributes funds to your creditors according to the plan. Priority debts (mortgage arrears, taxes) are paid first. Many unsecured creditors receive only pennies on the dollar — or nothing at all.
After completing all plan payments, remaining qualifying unsecured debts are discharged. You emerge current on your mortgage, free of unsecured debt, and with a powerful foundation for financial recovery.
Chapter 13 is the most powerful tool available to stop a foreclosure sale. The automatic stay halts the process immediately, and your plan lets you cure mortgage arrears over 3–5 years while making current payments. Many homeowners have saved their homes through Chapter 13 even after receiving a foreclosure notice.
If you purchased your car more than 910 days ago and owe more than the car is worth, Chapter 13 allows you to "cram down" the loan to the vehicle's current fair market value. This means you only pay what the car is actually worth — potentially saving thousands.
Your monthly plan payment is based on your disposable income, not the total debt you owe. In many cases, credit card companies and medical providers receive only a fraction of their claims — and whatever remains is discharged at the end of the plan.
If your home is worth less than what you owe on your first mortgage, Chapter 13 may allow you to "strip off" second mortgages or HELOCs entirely, converting them to unsecured debt that can be discharged.
Instead of juggling multiple creditor payments, you make one monthly payment to the trustee. They handle distribution to all your creditors. It simplifies your financial life dramatically.
FACT: Your plan payment is based on your disposable income, not your total debt. Priority debts (mortgage arrears, taxes) must be paid in full, but unsecured creditors often receive only a small percentage. Whatever isn't paid through the plan is discharged.
FACT: The plan payment is calculated based on what you can actually afford after all necessary living expenses. We work with you to create a budget that is realistic and sustainable. In many cases, the monthly plan payment is less than what clients were paying to creditors before filing.
FACT: Chapter 13 actually stays on your credit report for only 7 years (compared to 10 years for Chapter 7). And because you're making regular payments throughout the plan, many clients find they can rebuild credit even while still in their plan.
FACT: Life happens, and the court understands that. If you experience a temporary setback (job loss, medical emergency), we can request a plan modification to adjust your payments, or in some cases request a hardship discharge. We don't let one missed payment derail your entire case.