Chapter 13

Simply put, a Chapter 13 filing is possible if you have:

  • a regular income;
  • noncontingent, liquidated, unsecured debt of less than $307,675; and
  • noncontingent, liquidated, secured debts of less than $922,975.

11 U.S.C. § 109(e).

The primary advantage of a Chapter 13 filing over a Chapter 7 filing is that, if successful, you, by paying a portion of your prebankruptcy debts over the life of a Chapter 13 plan, can obtain a discharge of the unpaid balances while retaining all of your assets. You will have the opportunity to avoid foreclosure on your house (provided that you keep current on postpetition mortgage payments and pays off any prepetition mortgage arrearages over the life of the Chapter 13 plan). Another advantage is that more debts are deemed dischargeable in a Chapter 13 case than in a Chapter 7 case. 11 U.S.C. § 1328.