Bankruptcy is a common occurrence in the United States as thousands of individuals and businesses each year find themselves in an impossible financial situation that they just cannot get out of without some sort of legal help. In general, bankruptcy can be defined as the legal inability to pay debts or the state of having been legally declared bankrupt. There are several different types of bankruptcy including chapter 7, chapter 9, chapter 11, chapter 12, chapter 13, and chapter 15.

Chapter 13 bankruptcy is one of the most common types of bankruptcy. It has many different names such as “reorganization bankruptcy,” or “wage earner’s plan” but in the end they all mean the same thing. Chapter 13 bankruptcy allows the debtor to use their income to pay all or some of what is owed to creditors over a specific period of time. The time allowed is typically from three to five years, depending on several factors including: how much you earn (income) and the amount/size of the debts.

Obtaining chapter 13 bankruptcy protection can be a grueling process and because chapter 13 bankruptcy laws can be very complicated, you should consult a bankruptcy lawyer to help you with your filing. Experienced chapter 13 bankruptcy lawyers will know the ins and outs of the legal system, and they will be able to discuss the mechanics of chapter 13 bankruptcy and other possible alternatives or options if necessary.

Once your bankruptcy lawyer has determined that you are eligible for chapter 13, meaning that you meet certain income requirements, your debt isn’t considered too high, and you have attended credit counseling sessions by an agency approved by the United States Trustee’s office, they will oversee your case including filing, administrative tasks, filing your payment plan, etc. If you decide to move forward with chapter 13, a chapter 13 bankruptcy lawyer will explain the risks to you and your financial future, as well as offer other possible alternatives to bankruptcy. Keep in mind that a bankruptcy lawyer will also (or should) have extensive knowledge about debt management.

If you are ready to contact a chapter 13 bankruptcy lawyer to explore the possibility of chapter 13 or other debt relief options, visit the American Bar Association ( ABA ) website. The ABA features a lawyer locator which allows the user to search bankruptcy lawyer profiles in your local area. Access to the site and profiles is free.

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