4022 Shipyard Blvd Wilmington, NC 28403
Chapter 13 Bankruptcy Lawyer in Wilmington NC
A Plan to Get Back on Track While Protecting What Matters
Chapter 13 bankruptcy is often called a “reorganization” bankruptcy. Instead of wiping out debts immediately like Chapter 7, Chapter 13 allows you to create a manageable payment plan to repay some or all of your debts over time.
For many people, Chapter 13 provides the breathing room needed to regain financial stability while protecting important assets such as a home or vehicle.
Through a court-approved repayment plan, you can consolidate many of your debts into one affordable monthly payment, often significantly lower than what you were previously paying.
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When Chapter 13 May Be the Right Choice
Chapter 13 can be a powerful option for individuals who have regular income but need time and structure to get caught up financially.
You may benefit from Chapter 13 if you:
• Have fallen behind on mortgage payments and want to stop foreclosure
• Need time to catch up on past-due car payments
• Have tax debt that cannot be discharged in Chapter 7
• Earn too much income to qualify for Chapter 7
• Want to protect valuable assets that could be at risk in a Chapter 7 case
• Need to stop aggressive collection activity
Once a Chapter 13 case is filed, the automatic stay immediately stops most collection actions, including foreclosure, repossession, wage garnishments, and lawsuits.
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How the Chapter 13 Process Works
In a Chapter 13 case, you propose a repayment plan lasting three to five years. During that time, you make a single monthly payment to a Chapter 13 trustee, who distributes the funds to your creditors.
The plan is designed based on your income, expenses, and the types of debts you owe.
Importantly, many unsecured debts — such as credit cards or medical bills — may only receive partial repayment, and any remaining balance may be discharged at the end of the plan.
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Protecting Your Home and Other Assets
One of the most powerful benefits of Chapter 13 is the ability to save a home from foreclosure.
If you have fallen behind on mortgage payments, Chapter 13 allows you to spread the overdue payments over several years while continuing your regular monthly payments going forward.
This structured approach often gives homeowners the time they need to stabilize their finances and keep their homes.
Chapter 13 can also help protect vehicles, retirement accounts, and other assets that might otherwise be at risk.
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