Understanding Chapter 13 Bankruptcy

Many people who are struggling with debt assume that they are not eligible for bankruptcy relief because they have a job and make a decent salary. Fortunately, Chapter 13 bankruptcy does provide relief for people who are struggling with unmanageable debt despite maintaining gainful employment. In fact, Chapter 13 relief is only available to people who have a regular source of income.

Contact an attorney at the Arkansas law firm of Robertson, Oswalt & Associates to find out how we can help you understand your bankruptcy options.

How Does Chapter 13 Bankruptcy Work?

From the moment we file your Chapter 13 bankruptcy petition with the court, an automatic stay goes into effect which temporarily bars most creditors from further collection efforts. Then, we will submit a three- to five-year Chapter 13 debt payment plan to a U.S. Bankruptcy Court on your behalf.

With a Chapter 13 debt repayment plan, you are only required to make monthly payments that you can afford, as determined by the court. Once you have completed your payment plan, some of your debts may be erased, such as credit card and medical bills and other consumer debts that are subject to discharge through the U.S. Bankruptcy Code.

Depending on your income and debts, you could potentially discharge a significant portion of your debt. In addition, you obtain immediate relief from many adverse creditor collection efforts.

With a Chapter 13 bankruptcy, you may be able to put a halt to a wage garnishment, auto repossession or even a foreclosure of your home. Learn more about bankruptcy by going to our frequently asked questions page.

Contact Us

With office locations in Little Rock, Benton, Conway and Heber Springs, we serve clients throughout Arkansas. To schedule a consultation with a Little Rock Chapter 13 bankruptcy attorney at our firm, call 501-588-4451 or contact us toll free at 866-311-3815. You may also contact us by email.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.