Chapter 13 Bankruptcy Lawyer, PA

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 Philadelphia 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:

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 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:

Regular Income

Regular stable IncomeTo 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 requirementsYou must have enough income to pay all of your living expenses PLUS the Chapter 13 plan payments. Read More

Debt Limits

Secured Debt LimitsYour 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 LimitsUnsecured 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. Read More

Credit Counseling Requirement

Required Counseling SessionYou 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. Read More

Non-Business Filings

Primarily Individual Consumer DebtChapter 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. Read More

Ability to Qualify for a Chapter 13 Repayment Plan

Feasible Repayment PlanTo 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. Read More

How Jefferson Law, LLC Can Help

Eligibility for Chapter 13 filing can be complicated. Jefferson Law, LLC is a bankruptcy 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 bankruptcy law firm specializing in Chapter 13 bankruptcy filings. We help clients in Philadelphia, PA, and surrounding counties understand each step of the Chapter 13 process.

Here’s the Chapter 13 bankruptcy filing process:

Step 1: Pre-Filing Preparation

Free Consultation: Call us for a free attorney consultation to determine if bankruptcy is the best option for you.
Document Collection: We will provide you with a checklist of all mandatory documents needed to file for Chapter 13 bankruptcy protection.
Credit Counseling: The debtor must obtain a credit counseling certificate from an approved agency within 180 days before filing.

Step 2: Filing the Petition

Document Preparation: Jefferson Law, LLC will prepare your Chapter 13 petition, forms and schedules.
Automatic Stay: Upon filing, the Automatic Stay immediately restricts creditor from continuing or commencing collection actions such as, for example, foreclosure and wage garnishment.

Step 3: Developing the Repayment Plan

Plan Proposal: Working together, we create a 3–5-year repayment plan that includes all required debts, prioritizes secured debts, and adheres to court standards.

Step 4: Meeting of Creditors (341 Meeting)

Mandatory Meeting: Approximately 21-50 days after filing, you will attend a 341 meeting with your creditors and the appointed trustee.
Legal Representation: We will be present to advocate on your behalf and answer any questions the trustee or creditors may have.

Step 5: Plan Confirmation Hearing

Judicial Review: The trustee will review your repayment plan in a confirmation hearing to ensure it is feasible and meets all legal requirements.
Addressing Objections: If creditors or the trustee object to the plan, we will work to resolve any issues to secure court approval.

Step 6: Making Plan Payments

Payment Structure: Begin making payments according to the approved plan through the bankruptcy trustee.
Consistent Payments: Staying current on payments is essential for successful completion of the Chapter 13 process.

Step 7: Financial Management Course

Debtor Education Course: You must take a mandatory debtor education course and obtain a course certificate.
Course Certificate: We will file the course certificate with the court.

Step 8: Debts Discharge

Final Discharge: Upon successful completion of all plan payments and other requirements, the debtor will be discharged from all qualified debts.
Debt-free: You will be provided with a new financial lease on life that is unencumbered and free of crushing debt.

Step 9: Case Closure

Finalization: The court formally closes your case and enters an order discharging your eligible debts.

Still Have Questions? Contact Jefferson Law, LLC

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