Law Office of David Ruff

Chapter 13

Chapter 13 is often referred to as the reorganization bankruptcy.  

Chapter 13 stops repossessions and foreclosures while eliminating unsecured debts such as credit cards and medical bills.  However, certain unsecured debts such as taxes, child support and student loans are not dischargable in bankruptcy. 

Chapter 13 is a monthly payment plan that allows the debtor to reorganize past due house payments and automobile payments.  Chapter 13 is also an effective tool to repay past due taxes and child support.

Chapter 13 does allow the debtor to continue to pay on secured debts such as house payments and car payments.  In fact, retaining the secured debt is mandatory if the debtor wishes to retain the property securing the debt.  If the debtor is willing to "surrender" the collateral, they can eliminate the secured debt.


In most bankruptcy cases, all the assets of the debtor(s) are exempt.  "Exempt" means the assets are protected.  Exemptions vary from state to state.  Both Texas and Arkansas offer a fairly generous list of exemptions.  Keep in mind, an exemption does not avoid a secured debt.

Being over median income could force a debtor to file a Chapter 13 bankruptcy.  In this instance a debtor is forced to repay a portion of their unsecured debts.






We are a debt relief agency. We help people file for bankruptcy under the Untied States bankruptcy code.
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