Chapter 13 Bankruptcy

Chapter 13

Chapter 13 bankruptcy, also called “wage earners” bankruptcy, focuses on reorganizing finances, rather than discharging a debt. When you file Chapter 13 bankruptcy, your goal is to pay some of what you owe over a period of time, then the remainder of your debt will be discharged. In most cases, debtors end up paying only pennies on the dollar for debts like credit cards.

Chapter 13 bankruptcy is a good option for individuals and businesses who want to pay a reasonable amount to resolve their debt without liquidating assets. This is a common choice for individuals who are facing collections because once you file, they can no longer harass you or attempt to collect a debt.

How Does Chapter 13
Bankruptcy Work?

When you file Chapter 13 bankruptcy, you will work with a Bankruptcy Trustee to reorganize your finances. Together, you and your Trustee will work with creditors to establish payment plans. These plans are generally 3-5 years and are designed to help you pay off your debt by making manageable and affordable monthly payments.

To make your payment plan affordable, your Trustee will consider factors like:

  •   Mortgage payments
  •   Auto loans
  •   Child support or alimony
  •   Tax debts

With Chapter 13 bankruptcy, you can resolve secured and unsecured debts. Secured debts are items like a mortgage or auto loan. Unsecured debts are items like medical bills or credit cards. If there is a balance of unsecured debts once you complete the payment plan, that balance will be discharged. For secured debts, you have the option to continue making payments or surrendering the asset. Some debtors are also able to consolidate their student loans.

With that said, you do not have to surrender any property in order to complete Chapter 13 bankruptcy. You can choose to surrender an asset that you no longer wish to make payments on, but your assets will not be liquidated.

Contact a Chapter 13
Bankruptcy Attorney

If you are facing collections or mounting debt that you are struggling to repay, Chapter 13 bankruptcy may be a viable option for debt relief. Find out more about Chapter 13 bankruptcy and if it is the right option for you by contacting The Law Office of Erika Luna. Let our skilled bankruptcy attorney help you.

To our clients and community:

The Law Office of Erika Luna is committed to maintaining our employees’ safety and well-being and helping our clients do the same.


While we are closely monitoring the impact of the Coronavirus on our community, we want you to know that our telephone lines are open, and our staff is available to discuss your current case or to consult you on a potential one. 

We are currently offering a contactless bankruptcy process so people can file from the comfort of their homes. The entire process can be completed online and over phone/zoom calls. Clients can sign all paperwork electronically and attend the 341a hearing by phone. 

To arrange any in-person meetings, please call us for an appointment per the firm’s availability. We are taking substantial precautions to meet and exceed the CDC’s and state government’s guidelines for maximum protection. Please also note that your case, whether current or new, can be entirely managed remotely.

We hope you and your loved ones are safe and healthy during these challenging times. Thank you.

The Law Office of Erika Luna

A nuestros clientes y comunidad:

Nuestra firma está comprometida a mantener la seguridad y el bienestar de nuestros empleados y a ayudar a nuestros clientes a hacer lo mismo.

Mientras estamos monitoreando de cerca el impacto que el Coronavirus está teniendo en nuestra comunidad, queremos que sepa que las líneas telefónicas de nuestra oficina están abiertas y que nuestro personal está disponible para hablar sobre su caso o consultar sobre un caso posible.

Actualmente estamos ofreciendo un proceso de bancarrota sin contacto para que las personas puedan declararse desde la comodidad de sus hogares. Todo el proceso se puede completar en línea y por teléfono / llamadas con zoom. Los clientes pueden firmar todos los documentos electrónicamente y asistir a la audiencia 341a por teléfono.

Llámenos para solicitar una cita según la disponibilidad de la empresa. Estamos tomando precauciones importantes con nuestra oficina para cumplir y superar las recomendaciones de la CDC y del gobierno estatal para la máxima protección. Tenga en cuenta también que su caso, ya sea actual o nuevo, se puede manejar por completo de forma remota.

Esperamos que usted y sus seres queridos estén seguros y saludables durante estos tiempos difíciles. Gracias.

La oficina legal de Erika Luna