If you want to save your home from foreclosure, stop vehicle repossession, or catch up on overdue mortgage or car payments, Chapter 13 bankruptcy can be one of the most powerful tools available.
While Chapter 7 eliminates qualifying unsecured debts quickly, Chapter 13 focuses on restructuring debt so you can regain financial stability over time.
Many people in Utah choose Chapter 13 bankruptcy because it allows them to keep valuable property while still reducing or eliminating substantial amounts of debt.
If you’re behind on payments or need a structured plan to get back on track, Chapter 13 may be the strategic solution you’ve been looking for.
Chapter 13 bankruptcy, often called a wage earner’s plan, creates a three- to five-year repayment plan that consolidates your debts into one manageable monthly payment. You make payments through the court, not directly to your creditors.
During the plan, creditors cannot pursue collection, lawsuits, garnishments, or foreclosure. When you complete the plan, many remaining unsecured debts are discharged.
Chapter 13 is ideal for people who:
Chapter 13 gives you structure, protection, and time, three things most people need when their debt becomes overwhelming.
Just like Chapter 7, Chapter 13 triggers the automatic stay immediately upon filing. But Chapter 13’s stay is even more powerful for homeowners because it stops foreclosure and allows you to catch up on payments through the repayment plan.
The automatic stay stops:
This protection continues throughout your entire repayment plan.
Your Chapter 13 plan may include:
Secured Debts
These include mortgages and car loans. You can catch up on arrears while maintaining regular monthly payments.
Unsecured Debts
Your credit cards, medical bills, personal loans, and other unsecured debts often receive partial payment, and the remaining balance is discharged at the end.
Priority Debts
These include taxes and child support arrears. Chapter 13 allows you to pay these debts over time while staying protected from collection.
Car Loan Restructuring
If your car loan balance exceeds the value of the vehicle, you may reduce the loan amount to the fair market value through cramdown (in certain circumstances).
Chapter 13 repayment plans last three to five years, depending on your income and financial goals.
Here’s the typical timeline:
1. Consultation and Plan Preparation
You meet with a bankruptcy attorney and review your debts, income, and goals.
2. Filing the Case
Once your petition is filed, the automatic stay goes into effect.
3. Confirmation Hearing
Your attorney works with the trustee to confirm a repayment plan that fits your budget and satisfies legal requirements.
4. Making Payments
You make one consolidated monthly payment through the trustee.
5. Discharge
At the end of your plan, remaining qualifying debts are eliminated.
Neither option is better universally. The right chapter depends on your goals and financial situation.
I’ve created an in-depth Chapter 7 guide so you can easily compare your options.
Chapter 13 is far more complex than Chapter 7. Your repayment plan must meet strict legal standards, satisfy multiple categories of creditors, and fit within your financial realities, all while complying with bankruptcy law.
When you hire Blue Bee Bankruptcy, you gain:
Small mistakes can derail your plan or lead to unnecessary payments. Experienced legal representation ensures your plan succeeds from start to finish.
If Chapter 13 sounds like the right direction for you, the next step is to get clarity from an attorney who handles these cases every day. At Blue Bee Bankruptcy, we help clients throughout Utah rebuild their lives through strategic repayment plans.
Schedule a consultation today to evaluate whether Chapter 13 is the right solution for your situation.
At Blue Bee Bankruptcy, our lawyers are highly experienced in bankruptcy options. More importantly, we understand that each case we receive is unique and each client has different needs and goals. We will discuss these signs with you and decide the best route to take.
We strive to help our clients rebuild their lives and take steps toward a better financial future through filing.
If you’re dealing with the potential of bankruptcy, give us a call. Our team will work to help you by reviewing all of the options our firm has available. We will ensure you’ll get the best possible outcome for your situation.
Get in touch today so we can start working on either halting bankruptcies or preventing them from taking place altogether!
Contact Us Today For Help! You can schedule your free consultation online or call us at (801) 285-0980.
