What is Chapter 13 Bankruptcy

Chapter 13 Bankruptcy is a type of bankruptcy that helps reorganize a filer’s debts while protecting the filer from the looming threat of debt collection, repossession, and foreclosure. Through an agreed upon payment plan and over the course of three to five years, the debtor makes feasible payments to their creditors. Contingent on the successful completion of this payment plan, all qualifying debts are discharged. Often referred to as the wage earner’s plan, you can acquire a debt-free future while still maintaining protection of the life you know and love. Assets such as your car or your home are protected as you go through Chapter 13, providing stability and security.


Once you file for Chapter 13 Bankruptcy, immediate relief kicks into effect with the automatic stay, prohibiting creditors from taking action against you or making pesky collection phone calls to your number. There are many reasons why some people opt into Chapter 13 Bankruptcy and enjoy its extensive benefits. Chapter 13 is often the right course of action for those who have filed for Chapter 7 previously or who do not qualify for Chapter 7. Debtors seeking to avoid foreclosure on their homes or safeguard against seizure of their car often find Chapter 13 to be the most beneficial option. If your income is stable, you have a substantial disposable income, or your income is too high to qualify for Chapter 7, Chapter 13 could deliver you out of financial trouble.

Chapter 13 Bankruptcy might be the path towards financial stability that you have dreamed of, especially if you want to minimize disruption to your life. Determining if Chapter 13 is your easiest way to acquire a fresh start is best done with the help of a trusted Bankruptcy Attorney right here at Hoglund Law Bankruptcy.

The Difference Between Chapter 13 and Debt Settlement

It is imperative to understand the substantial differences between Chapter 13 Bankruptcy and Debt Settlement to discern which track will deliver you to debt relief. Debt settlement is a common solution for filers that do not qualify for Chapter 13 Bankruptcy due to eligibility requirements imbedded in Bankruptcy laws. While both options require you to make some level of payments to your creditor, many clients end up paying less through Chapter 13 than Debt Settlement. Debt settlement lowers the total amount owed by negotiating directly with your creditors. Conversely, Chapter 13 simply demands payments through a three to five-year plan before all remaining debts are discharged.

In addition to paying less through Chapter 13, it is also preferable in that it does not result in tax consequences. While these two methods are both solutions to the same problem, eligibility usually dictates which solution is pursued. If you seek to protect a large inheritance, debt settlement may still be the superior resolution. Additionally, debt settlement reports for a shorter period of time and has a more minimal impact on your credit report.

Determining eligibility and ultimately concluding if Chapter 13 is more advantageous to you than debt settlement can be complex without the helping hand of a trusted Bankruptcy Attorney. Finding aid at Hoglund Law guarantees that we will either send an attorney in to fight for you in debt negotiation or you will have a partner by your side through your Bankruptcy filing process. Getting the help, you need in constructing your game plan for pursuing financial freedom has never been as easy as it is here at Hoglund Law.

Is Chapter 13 Right for You?

Several factors could ultimately decide if Chapter 13 Bankruptcy is superior to Chapter 7 and Debt Settlement for your personal case. When you sit down for a free consultation at Hoglund Law, we dive deep into your background, ensuring no details are lost, to identify which plan will bring you relief.

We could select a Chapter 13 over Chapter 7 if you have a steady and secure income with the potential to keep up with a set payment plan for three to five years and your debts are dealt with more effectively in Chapter 13 than in Chapter 7. Furthermore, if you meet eligibility requirements and have the goal of protecting against foreclosure of a home or seizure of a car, Chapter 13 is the solution. Because Chapter 13 Bankruptcy is a longer process, you have to abide to the rules for a longer time period. However, just because Chapter 7 is a more common solution to financial troubles does not mean it is the best solution for you.

Chapter 13 typically allows for you to pay a lower total amount than through debt settlement. Furthermore, unlike Chapter 13, debt settlement does not protect you with automatic stay from your creditors taking action against you or interest fees building up on your debts. Chapter 13 is capable of delivering incredible results if eligibility is met and you are guided through the process with the counsel of an experienced Bankruptcy Lawyer.

Navigating the differences in Bankruptcy solutions and comparing the pros and cons with your individualized situation is a daunting task when handled alone. While the differences in methods for debt relief may seem minimal, selecting the best solution as soon as possible is the first step in achieving your financial goals. When you come into Hoglund Law for a free consultation, you will walk away with a bankruptcy plan and a new lease on life.

How We Can Help

The expansive and intricate Bankruptcy laws are overwhelming enough to give anyone a headache. Consequently, partnering yourself with our team of valued Bankruptcy Attorneys who have dedicated the past three decades to becoming experts on the Chapter 13 Bankruptcy Code is the best way to ensure you are equipped with the best legal advice.

At Hoglund Law, we do things a little differently. We make ourselves accessible to you from financial insecurity to financial freedom, not merely from filing to discharge. While many other firms solely aid until discharge, Hoglund Law stays with you until you meet your financial goals. With credit counseling, credit report screening, and post-discharge assistance, we make sure you get to enjoy the benefits of debt relief fully.

If you are searching for a law firm boasting 30 years of excellence in delivering clients exceptional legal aid in the Bankruptcy process, look to further. Book a free consultation in any of our offices to begin your first step towards the debt-free life you desire.