Using Chapter 13 To Repay Debts

If your financial situation is less than ideal and your debt, monthly bills and overdue payments have started to spiral out of control, the best option for you may be to file for Chapter 13 bankruptcy protection.

At the Law Office of Deborah N. Arthur, we have your best interest in mind when it comes to bankruptcy. Our mother-daughter legal team believes in focusing on the details to make sure everything in your case is done correctly the first time and that you get the best outcome possible in your bankruptcy case. Bankruptcy can be hard both emotionally and financially, and our lawyers know how to navigate the process to make it as easy as we can for you and your family.

What Is Chapter 13 Bankruptcy?

In a Chapter 13 bankruptcy proceeding, a debtor typically proposes paying their creditors a portion of their income over a three- to five-year. Filing Chapter 13 bankruptcy may allow you to avoid home foreclosure, make up auto or mortgage payments that were missed, prevent the accrual of interest and pay your back taxes all while maintaining your property and assets. If you don't miss any payments, any dischargeable debt remaining at the end of the agreed repayment period will be released. In essence, Chapter 13 is a repayment debt plan instead of a liquidation debt plan — and sometimes it's the best option for those who want to hold onto their property.

At the Law Office of Deborah N. Arthur, our attorneys have 40-plus years of combined experience to evaluate your situation, and help you determine the best course of action to protect your property and negotiate a manageable repayment plan to help satisfy your debtors. Our office has been serving Annandale and Northern Virginia since 1982 — we strive to make you comfortable with the bankruptcy process so you can make informed decisions before proceeding.

What Is The Virginia Bankruptcy Means Test?

If you are filing for bankruptcy and have an income higher than the Virginia median income for your household size, you will have to complete the means test to see if you are able to pay your debt back through a Chapter 13 bankruptcy payment plan or are eligible to file a Chapter 7 bankruptcy plan. To complete the means test you will need to gather information about your income and expenses, including:

  • All income earnings, including items such as business income, rental income, interest, and dividends, pension, etc., for the prior six months
  • Legally obligated expenses, including those necessary to maintain your health and welfare

Once all of your information has been gathered, you will need to subtract your allowed expenses from your income to see the amount that will be available to make your repayment to the debtors under a Chapter 13 plan, or whether a Chapter 7 plan will be a better option for you.

Contact the Law Office of Deborah N. Arthur at 703-278-2028, or email us online, if you need to file or would like to know more about Chapter 13 bankruptcy. Take some of the stress out of bankruptcy proceedings by scheduling your free bankruptcy consultation today.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.