CHAPTER 13 bankruptcy is frequently chosen as a remedy when you are not eligible for Chapter 7 or are looking to reorganize and catch up on missed secured debt payments. It is commonly referred to as a "catch-up" plan as it can be utilized to make up missed mortgage payments and provides you with up to 60 months (5 years) to get current. It may also slash your unsecured debt down to pennies on the dollar depending upon your income and expenses.

For those who have fallen behind on their mortgage, been sued in a foreclosure action, or held ineligible for or denied a loan modification, Chapter 13 may be able to help. Upon filing, the court issues an automatic stay. Often this is the only way to stop an imminent foreclosure sale and save your home. Chapter 13 gives you a chance to demonstrate to the court that you have enough income to meet your obligations over time.

The most important part of a Chapter 13 is the proposed monthly repayment plan, which describes in detail when you will make your payments, for how long, and how much you will pay over the life of the plan. Although payments are commonly the same amount every month, this is not always the case. Consideration will be given to your income, expenses, and debts. The court will need to be convinced that your plan is a viable one. The skilled and experienced attorneys at Baaden & Hirschey, P.C., can help you craft a plan to be approved by the court.