Chapter 13 Bankruptcy 

Chapter 13 Bankruptcy: What To Know

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy offers not only hope but a solution to prevent finiancial ruin.

Sometimes referred to as the wage earners bankruptcy, chapter 13 allows those with income to repay at least some of their debts. One of the biggest benefits in chapter 13 is the ability to keep all of your property, including your home and car, while repaying delinquent payments to creditors over time.

Chapter 13 bankruptcy  also stops foreclosure, garnishments, and sales tax. At Cox Law Group, our clients can even pay their attorney’s fees over time through their chapter 13 repayment plans.

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Are You Eligible For Chapter 13 Bankruptcy?

Under Chapter 13, debtors have three to five years to resolve their debts by using their disposable income to find a repayment plan. To be eligible to file under Chapter 13, debtors must have no more than $419,275 in unsecured debt, like credit cards or personal loans, and no more than $1,257,850 in secured debts, which includes home mortgages and car loans.

 Debt Limits

Secured debt limit is $1,257,850 and unsecured debt limit is $419,275.

Steady Income

Debtors must have regular income that allows them to repay a portion of their outstanding debt over 36 to 60 months.

Not a Business

Chapter 13 Bankruptcy is a consumer filing. Businesses would file under Chapter 7 or 11 of the Bankruptcy code.

 Chapter 13 Bankruptcy: How It Works

Chapter 13 Bankruptcy allows the petitioner to submit a reorganization plan while protecting his or her property from creditors. This safeguards assets against foreclosure or repossession and typically allows the discharge of most unsecured debts. Listed below is the general process for Chapter 13 bankruptcy: 

filing the chapter 13 bankruptcy petition

The case begins with the filing of the petition in the bankruptcy court. Included in this filing is the debtor’s schedule of assets and liabilities, current income and expenditures, schedule of contracts and leases, and statement of financial affairs. The debtor must also file a certificate of credit counseling and must provide the chapter 13 case trustee with a copy of his or her tax return for the most recent year. In cases where an automatic stay is needed to immediately stop a foreclosure or repossession, debtors can file an emergency “short form” petition in order to get the quickest relief. Your attorney at Cox Law Group PLLC will have decades of experience in chapter 13 bankruptcy and will prepare all of the necessary court filings for you.

attend the meeting of creditors (341 hearing)

This hearing is typically scheduled between 21 to 50 days after the bankruptcy petition is filed. The hearing is conducted by the chapter 13 trustee assigned to the case. During the meeting of creditors debtors will answer basic questions from the trustee about their finances and the proposed terms of their plan. If a husband and wife file a joint petition, they must both attend the meeting of creditors. Your attorney from Cox Law Group PLLC attends your meeting of creditors with you and will assist you throughout the process in communicating with the trustee’s office.

chapter 13 plan and confirmation hearing

No later than 45 days after the meeting of creditors (341 hearing), the bankruptcy court holds a confirmation hearing to decide whether the plan is feasible and meets the standards for confirmation set forth in the Bankruptcy Code. Creditors will receive notice of the hearing and may object to the confirmation. If the court confirms the plan, the chapter 13 trustee will distribute funds. If the court declines to confirm the plan, the debtor must file a modified plan. Our attorneys will work with the clients to get their plans confirmed, and approved by the court.


The bankruptcy law regarding the scope of the chapter 13 discharge is complex and is one of the primary reasons debtors should have legal representation prior to filing a case. In general, a chapter 13 debtor is entitled to a discharge upon completion of all payments under the chapter 13 plan as long as the debtor (1) certifies that all domestic support obligations that came due prior to making such certification have been paid; (2) has not received a discharge in a prior case filed within two years for a prior chapter 13 case and four years for a prior chapter 7, 11 or 12 case; and (3) has completed and approved course in financial management. Once entered, the discharge releases the debtor from all debts provided for by the plan.

Is Chapter 13 Bankruptcy Right For You?

Our bankruptcy attorneys have decades of experience to evalute your unique financial situation to help you determine if Chapter 13 Bankruptcy is the right choice for you and your family.

Contact Us

We offer a free, confidential consultation at any of our 5 office locations throughout Central Virginia, and are also available by video conference via FaceTime, Skype or GoToMeeting. When you call our firm, your initial consultation with us is free, so you have nothing to lose by taking the first step today.

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Cox Law Group PLLC

Cox Law Group is proud to be a Debt Relief Agency. We help individuals and families get relief from debt under the Bankruptcy Code.


The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney with our firm for individual advice regarding your own situation. Cox Law Group encourages you to contact the Firm via e-mail or otherwise. The use of the Internet or voicemail for communications with the Firm will not establish an attorney-client relationship and messages containing confidential or time-sensitive information should not be sent until you and we agree that there is an attorney-client relationship between us. Until such a relationship exists, we will assume that any information you send us is not time-sensitive or confidential.

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