Chapter 13

Chapter 13 is a debt repayment plan for individuals.  In Chapter 13 bankruptcy, the debtor keeps his property and makes regular payments to the Chapter 13 trustee out of future income for the trustee to then pay creditors over a three-year period. Chapter 13 also provides a mechanism for individuals to prevent foreclosures and repossessions, while catching up on their secured debts.

In theory, as the filer of a Chapter 13 bankruptcy, you have income left over after paying living expenses.  There may not be enough to pay all of your creditors, but there is enough to make a payment to a trustee, who is responsible for distributing payments to creditors under a plan created by your attorney.  Often these payments allow for 10 cents on the dollar on up to the unsecured creditors.

Chapter 13 is beneficial to many debtors because it can save a home from foreclosure or a car from repossession.

Some attorneys won‘t do Chapter 13 because they are too much work.  Chapter 13 typically lasts a longer period of time –up three years compared to the 5 to 7 months for Chapter 7.  But for some clients who have property that could otherwise be lost in Chapter 7 filing, Chapter 13 offers the best alternative.

Chapter 13 bankruptcies also help debtors deal with situations that won’t go away with Chapter 7, such as taxes or second or third mortgages on homes.

Chapter 13 is helpful in cases where the debtor has used credit cards extensively and possibly fraudulently. In these cases, Chapter 13 is the better choice.  Fraud is not an issue when filing for Chapter 13 bankruptcy, since the debtor is making an attempt to pay back his or her original debts.

For an initial consultation without charge, call Robert I. Cohen at (303) 830-2811

Robert I. Cohen
1888 Sherman St.
Suite 400
Denver, CO 80203-1159
Telephone: (303) 830-2811
Fax: (303) 830-7016
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