Chapter 13 Bankruptcy

Michael Daniels Law

Chapter 13 Reorganization Bankruptcy

Filing chapter 13, also called “reorganization bankruptcy,” allows you to keep assets like a car or a home and repay your debts over a 3 to 5 year period through a court-approved plan. A Chapter 13 trustee is administered by the court to collect payments and distribute the money to your creditors. Upon the successful completion of the plan, the remaining debts are forgiven. Chapter 13 plans are unique and different for every individual.

Michael Daniels is highly dedicated bankruptcy lawyer who understands that filing for Chapter 13 bankruptcy can be a stressful and life-changing decision. Get comprehensive advice and straightforward answers. Call 505-246-9385 or email for a free consultation today. 

Filing a bankruptcy case to reorganize your debt involves many stepsGenerally, you may be a good candidate for Chapter 13 bankruptcy if you are in any of the following situations:
  • You are behind on your mortgage or auto loan, and want to make up the missed payments over time and reinstate the original agreement.
  • You have a tax debt that cannot be eliminated (discharged) in Chapter 7 bankruptcy, but can be paid off over time on a payment plan by filing a Chapter 13 bankruptcy.
  • You owe more on a car or mobile home debt than the collateral is worth. In a Chapter 13 bankruptcy you may be able to pay the creditor the value of the collateral (as opposed to the total balance due) and get the title released to you during the reorganization bankruptcy. This is not always possible.
  • You have a sincere desire to repay your debts, but you need the protection of the New Mexico bankruptcy court to do so.
  • You need help repaying your debts now, but need to leave open the option of filing for Chapter 7 bankruptcy in the future.
  • Your income is above the state median level, so that you may not be able to file a Chapter 7 case under the new law.
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