Chapter 13 bankruptcy
Chapter 13 bankruptcy is for reorganizing debts, some of which may be discharged or adjusted. Compare this to a Chapter 7 bankruptcy which liquidates all your unsecured debt. Chapter 13 bankruptcy is for persons with regular income. Outside Oklahoma, Chapter 13 bankruptcy is also called a “wage earner bankruptcy.”
Oklahoma City bankruptcy attorney Christi Giddeon helps clients with all aspects of bankruptcy law.
A Chapter 13 bankruptcy plan is a powerful tool to pay your creditors all or part of what you owe on terms favorable to you. You will even be able to keep property such as your home or car when you are behind on the payments.
A Chapter 13 bankruptcy can stop a home foreclosure or repossession of a motor vehicle. The Chapter 13 bankruptcy plan allows you to catch these payments up over a three to five year period.
You can also use a Chapter 13 bankruptcy to address debts that are not dischargeable under a Chapter 7 bankruptcy. For example, you may owe back income taxes or back child support. In many cases, the Chapter 13 bankruptcy plan allows you to pay these debts over a three to five year period and avoid your wages from being garnished.