Retain your assets and repay your debt with chapter 13 bankruptcy

Chapter 13 is a form of bankruptcy that allows qualifies individuals or the owner of a small business, the opportunity to repay the outstanding debt and keep the assets. A bankruptcy attorney in Des Moines is best suited to advise you if chapter 13 suits you or would chapter 7 be a better solution.

The differences between chapter 13 and 7:

The primary purpose of chapter 13 bankruptcy is to enable the debtor to keep assets that would be turned over to the trustee for liquidation under chapter 7. If you file for either chapter 13 or 7, in most cases, you will be allowed to keep your house and car. Under chapter 7, any rental properties owned by the debtor would be liquidated as would antiques and collectables.

Chapter 7 bankruptcy allows the debtor to get a fresh start but discharging all his debts. Under chapter 13, however, you still have to repay your debts before you are discharged from bankruptcy. There are advantages to filing for chapter 13.

Who can file for chapter 13 bankruptcy?

The only person who is allowed to file is an individual who has incurred debt on the date of filing of:

      *     Less than $250,000 in unsecured debt

      *     Less than $750,000 in secured debt

      *     All of these debts must be non-contingent meaning they must be for a fixed amount and have no conditions attached.

What are the benefits of filing for chapter 13 bankruptcy?

A Bankruptcy Attorney In Des Moines will tell you that chapter 13 protects the debtor from collection efforts, lets the debtor keep his personal property and all real estate and gives the debtor the opportunity to repay all his debts through a reduced debt action plan. As you will repay your debt, your filing for chapter 13 will remain on your credit history for a shorter period of time than chapter 7.

How long does it take to pay off debt under chapter 13?

The time frame for debt repayment is all determined by the amount you can afford to pay after all necessary living expenses have been taken into account. These expenses include insurance premiums, mortgage payments, etc.

The typical time frame that the court looks for is 36 months, but in no case will the court allow the repayment period to exceed five years. If, when your payment analysis is created, it shows you have the ability to pay $300 per month over your normal living expenses, the trustee will disperse this amount every month for the agreed-upon period. At the end of the period, say 36 months, you become discharged from all debt regardless of whether your creditors were paid in full or not.


A bankruptcy attorney in Des Moines is the best person to advise you on the benefits of the various methods of declaring bankruptcy. In Des Moines, you are invited to contact Kevin Ahrenholz, Bankruptcy Lawyer.




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