Chapter 13 Bankruptcy
Regain Control of Your Finances Through a Structured Repayment PlanWhat Is Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy, often referred to as “debt consolidation” bankruptcy, allows individuals to repay all or part of their debts over a 3–5 year period under the protection of a U.S. bankruptcy court. It is ideal for individuals with regular income who wish to retain their assets while resolving past-due accounts.
Unlike Chapter 7, Chapter 13 does not eliminate debt outright, but it enables you to reorganize it into a manageable monthly repayment plan, tailored to your financial ability.
Benefits of Filing Chapter 13
Stop home foreclosure and catch up on mortgage arrears
Prevent vehicle repossession and reinstate a suspended driver’s license
Settle delinquent taxes or stop aggressive IRS collection
Address parking and traffic ticket-related debt (particularly relevant in Chicago)
Halt collection lawsuits, garnishments, and calls
Consolidate unsecured debts like credit cards and medical bills into one affordable monthly payment
Note: Not all benefits will apply in every case. Tang & Associates will help you understand which options may be available to you, based on your unique financial situation.
Who Qualifies for Chapter 13 Bankruptcy?
You may qualify for Chapter 13 if:
- You have a steady source of income (wages, self-employment, pension, etc).
- Your secured and unsecured debts fall within the limits set by the Bankruptcy Code.
- You are looking to protect your home or car while repaying debt.
- You are not eligible for Chapter 7 or want to retain more assets than Chapter 7 allows.
How Chapter 13 Works
The following steps provide a general overview of the Chapter 13 process. Every case is unique, and results may vary depending on your eligibility and the types of debt involved.
- File a petition with the bankruptcy court.
- Submit a proposed repayment plan based on your income and expenses.
- Attend a 341 Meeting of Creditors.
- Begin making monthly payments to a trustee, who distributes funds to creditors.
- Receive a discharge after successfully completing the plan.
Most plans last between 36 to 60 months. During this time, creditors cannot pursue collections or legal action against you.
Chapter 13 vs. Chapter 7 Bankruptcy
Chapter 13
- Type: Debt reorganization
- Repayment required via a monthly plan
- Time to Completion: 3 to 5 years
- Asset Retention: More likely to keep property
- Income Requirement: Must have a regular income
Chapter 7
- Type: Debt elimination (liquidation)
- Repayment NOT required (except non-dischargeable debts)
- Time to Completion: 3 to 6 months
- Asset Retention: May require the sale of non-exempt assets
- Income Requirement: Must pass the means test
Not sure which chapter is right for you? Give us a call at (773) 944-4000, and we will guide you.
Why Choose Tang & Associates?
At Tang & Associates, we understand how overwhelming debt can be, especially when you are trying to avoid losing your home, car, or wages.
That is why we work to make the bankruptcy process understandable and manageable. With over 30 years of experience handling Chapter 7 and Chapter 13 bankruptcy matters for clients across the Chicago metropolitan area, we offer personalized strategies to protect what matters most to you.
Clients can expect easy access and direct communication with our team, along with transparent pricing and flexible payment options.
FAQs – Chapter 13 Bankruptcy
How long does Chapter 13 bankruptcy stay on my credit?
Chapter 13 bankruptcy typically remains on your credit report for up to 7 years from the filing date. Some individuals find opportunities to start improving their credit during and after their repayment plan.
Will I lose my home or car?
In most cases, no. Chapter 13 helps you catch up on past-due payments and avoid foreclosure or repossession.
Can I include tax debt or parking tickets?
Yes. Certain taxes and Chicago parking tickets can be included in a Chapter 13 repayment plan.
What happens if I miss a payment?
Missing a payment could put your case at risk, but the court may allow modifications. Contact your attorney immediately if your financial situation changes.
Ready to Take Control of Your Debt?
Filing Chapter 13 is not the end — it’s a strategic path forward. Tang & Associates is here to help you take the next step. Let’s work together to build a repayment plan that respects your needs and helps you move forward — one clear step at a time.
Call us at (773) 944-4000 or contact us online by completing the form below.