Title- Chapter 13 Bankruptcy

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy provides individuals with the opportunity to consolidate their debts into one monthly plan payment that is repaid over 3 to 5 years.   Jefferson Law, LLC is an experienced Montgomery County Chapter 13 bankruptcy firm that helps clients throughout Philadelphia and the surrounding counties obtain financial stability with Chapter 13 bankruptcy filings.

Chapter 13 bankruptcy is utilized for debtors that have:

• Too much income to qualify for a Chapter 7 bankruptcy filing 
• Assets that can only be protected by filing for Chapter 13 bankruptcy protection 
• Have sufficient income to qualify for a 3-to-5-year Chapter 13 repayment plan

Who Qualifies for Chapter 13? 

Not everyone can file under Chapter 13 because of the minimum requirements needed to qualify. Jefferson Law, LLC is a Montgomery County Chapter 13 bankruptcy law firm that will provide you with a free consultation to determine whether Chapter 13 is the best option for you. Below is a list of primary qualifications for Chapter 13 bankruptcy:

1. Regular Income

• Regular stable Income: To file for Chapter 13 bankruptcy protection, you must have regular stable income sufficient to qualify for a 3-to-5-year repayment plan of the debt that must be included in your Chapter 13 plan.  Income can be generated from self-employment, social security benefits, rental income, or any other income consistently generated.
• Sufficient Income to meet plan requirements: You must have enough income to pay all of your living expenses PLUS the Chapter 13 plan payments. 

2. Debt Limits

• Secured Debt Limits: Your total secured debts, such as mortgages and car loans, as of 2024, cannot exceed approximately $1,395,875. These limits are adjusted periodically, so it is important to confirm current amounts.
• Unsecured Debt Limits: Unsecured debts include credit card balances and medical bills that cannot exceed approximately $465,275. If either your secured or unsecured debt exceed these limits, Chapter 13 is not an option, and other alternatives will have to be considered.  Again, these limits are adjusted periodically, so it is important to confirm current amounts.

3. Credit Counseling Requirement

• Required Counseling Session: You are required to take a credit counseling course, from an approved provider, and obtain a counseling certificate within 180 days before filing a Chapter 13 bankruptcy petition. 

4. Non-Business Filings

• Primarily Individual Consumer Debt: Chapter 13 is designed for individual debtors with consumer credit card debt, not businesses. However, individuals who are also personally liable for business-related debts may also be covered.

5. Ability to Qualify for a Chapter 13 Repayment Plan

• Feasible Repayment Plan: To qualify, you are required to make a feasible repayment plan that meets the court's standards and aligns with your income. To be feasible, you must have enough income to cover all the debt that must be included in the repayment plan PLUS enough income to cover your regular monthly expenses.

How Jefferson Law, LLC Can Help

Eligibility for Chapter 13 filing can be complicated. Jefferson Law, LLC is a Montgomery County Law Firm that specializes in Chapter 13 bankruptcy filings.  We can help you develop a plan that fits your financial needs.  We will first provide you with a free consultation to determine whether a Chapter 13 filing is your best option.  If you are eligible, we will draft a repayment plan that place you in the best possible position for a successful filing. 

The Chapter 13 Bankruptcy Process

Filing for Chapter 13 bankruptcy can be a complex process, but with the right guidance, it can provide a manageable path to financial stability. Jefferson Law, LLC is an experienced Montgomery County law firm specializing in Chapter 13 bankruptcy filings.  We help clients in Philadelphia, Montgomery County, PA, and surrounding counties understand each step of the Chapter 13 process. 

Here’s the Chapter 13 bankruptcy filing process:

Still Have Questions? Contact Jefferson Law, LLC: 215-399-0911

For a free personalized consultation with an experienced Montgomery County Chapter 13 bankruptcy attorney, contact Jefferson Law, LLC today and take the first step toward a stronger financial future.