Chapter 13 Bankruptcy


Chapter 13 bankruptcy offers individuals an opportunity to save their homes from foreclosure. The automatic stay stops the foreclosure proceeding as soon as the individual files the Chapter 13 petition. A Chapter 13 bankruptcy is also called a Wage Earner’s Plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this Chapter, debtors propose a repayment plan to make installment payments to creditors over three to five years. Nevertheless, they must still make all mortgage payments that come due during the Chapter 13 plan on time.

Are there requirements for filing Chapter 13 bankruptcy?

Yes. You must have a stable income with a disposable income (income left over after you pay for basic life necessities such as food and utilities). Your total unsecured debt must be less than $360,475, and your total secured debt must be less than $1,081,400.

How long will it take to pay back my debts?

If your income is more than Washington State’s median income, your repayment period will most likely be five years. The minimum repayment period is three years. Please consider that every case is different and this is something that will be discussed between you and your attorney.

Why should I file Chapter 13 instead of Chapter 7 bankruptcy?

  • If you have a home or property, Chapter 13 bankruptcy is your best option in protection of property loss.
  • If you have debts that cannot be discharged by filing Chapter 7 bankruptcy, Chapter 13 can better help eliminate your debt or structure your debt payments.
  • If you have moral convictions and want to pay all of your debt, no matter how long it takes, Chapter 13 allows the creation of a payment plan.

Can a loan cosigner be responsible for my debt if I declare bankruptcy?

Yes. A lender can require the co-signer to make payments on a loan once the principal has declared bankruptcy. The principal signer defaulting means that the co-signer will be responsible for keeping up payments.

Am I guaranteed to keep my home?

Chapter 13 provides more protection against property loss than Chapter 7, but keeping your home is dependent on the status of your loan (current or in foreclosure). Please call us immediately at 1-888-966-7934 to speak with a legal representative providing a free case review to help answer this question specific to your credentials.


Will I lose my retirement account or payments from social security?

Generally, no. Retirement accounts that are ERISA-qualified are not considered property of an estate and are not taken into consideration as assets. Money in a bank account where the only deposit into the account is a direct deposit of Social Security benefits are generally protected.

Our chapter 13 bankruptcy attorneys in Tacoma are here to help you understand your rights and advise you in choosing the correct Bankruptcy Chapter for your situation. Get started today in taking back control of your life. Call Brixius Law Group a call today at 1-888-966-7934 to get started with your case. We will confidentially and sensitively discuss your situation and offer a payment plan for our attorney fees to make this process affordable for you. We are here to help.