New York Chapter 13 Bankruptcy Attorneys

Chapter 13, often referred to as the “wage earner’s plan,” allows individuals with regular income to repay all or a portion of their debts over a three-to-five-year period through a structured repayment plan.

Unlike Chapter 7, Chapter 13 does not require liquidation of assets. Instead, it allows you to catch up on missed payments, reorganize your finances, and protect what you own. At the end of the plan, remaining eligible unsecured debts are discharged.

For many individuals, a repay debt Chapter 13 plan provides the balance between financial relief and asset protection.

To qualify for Chapter 13, you must:

• Be an individual (not a corporation or partnership)
• Have a regular source of income sufficient to fund a repayment plan
• Have secured and unsecured debts within federal limits
• Be current on required tax filings

Our attorneys conduct a full financial review to determine eligibility and ensure that a bankruptcy repayment plan lawyer structures the most effective approach for your situation.

Chapter 13 allows you to reorganize different types of debt into a manageable plan:

Secured Debts

• Mortgage arrears
• Vehicle loans
• Tax liens

Priority Debts

• Recent income taxes
• Domestic support obligations

Unsecured Debts

• Credit cards
• Medical bills
• Personal loans
• Payday loans

By consolidating these obligations into one structured plan, Chapter 13 simplifies repayment and reduces financial pressure.

Chapter 13 is one of the most powerful tools available to individuals seeking to stop foreclosure in New York bankruptcy and regain control of their finances. It can immediately halt foreclosure proceedings and give you time to catch up on missed mortgage payments through a court-approved plan.

It can also prevent vehicle repossession and, in some cases, reduce the balance owed on a car loan to its current value. Many filers are able to significantly lower monthly payments while maintaining ownership of essential assets.

Additionally, Chapter 13 allows you to consolidate multiple debts into a single monthly payment, eliminating the stress of dealing with multiple creditors and collection efforts. It can also protect co-signers from collection actions and provide relief for certain debts that are not dischargeable under Chapter 7.

Filing Chapter 13 requires careful planning. Common mistakes include:

• Failing to disclose all debts or assets
• Missing plan payments
• Not filing required tax returns
• Taking on new debt without court approval
• Failing to complete required financial education courses

Working with an experienced NYC Chapter 13 bankruptcy lawyer helps you avoid these issues and keeps your case on track.

At Pardalis & Nohavicka, we take a comprehensive and strategic approach to every Chapter 13 case. We begin by carefully analyzing your income, expenses, debts, and assets to design a repayment plan that is both realistic and aligned with your long-term financial goals.

Our attorneys handle the preparation and filing of all required bankruptcy documents, ensuring accuracy and compliance with court requirements. We represent you at the 341 Meeting of Creditors and throughout the plan confirmation process, negotiating with trustees and creditors to secure favorable terms.

Beyond filing, we remain actively involved throughout the life of your plan. If your financial circumstances change, we work to modify your repayment plan accordingly. Our goal is not only to help you complete your Chapter 13 case successfully, but to position you for financial stability once the process is complete.

Completing a Chapter 13 plan is a major financial milestone and a fresh start.

Many individuals begin to see credit improvement even during the repayment period, particularly as debts are reduced and consistent payments are made. After discharge, rebuilding continues through responsible financial habits.

You can accelerate recovery by paying all obligations on time, keeping credit utilization low, and monitoring your credit reports regularly. Many individuals are able to qualify for car loans shortly after discharge and may become eligible for a mortgage within a few years, depending on their financial profile.

With the right strategy, Chapter 13 becomes a foundation for long-term financial health.

How long does a Chapter 13 repayment plan last?

Plans typically last 3 years for individuals below the median income and 5 years for those above it.

What happens if I cannot keep up with payments?

You may be able to modify your plan, request temporary relief, or convert to Chapter 7 depending on your circumstances.

Can Chapter 13 stop a foreclosure already in progress?

Yes. The automatic stay immediately halts foreclosure and allows you to catch up on missed payments over time.

Will I have to appear in court?

You will attend a 341 Meeting and a confirmation hearing, but most clients have minimal additional court involvement.

Can I file Chapter 13 after a previous bankruptcy?

Yes, subject to timing rules. We review your history to confirm eligibility.

What debts are not discharged?

Child support, alimony, most student loans, criminal fines, and certain tax debts generally cannot be discharged.