A Chapter 13 Bankruptcy may be the right option for you if you are behind on your bills and feel as if you are falling further and further behind, with little or no hope of ever catching up. A Chapter 13 Bankruptcy may provide you with the opportunity to reorganize all of your monthly payments into one low monthly payment that you can afford. This probably sounds too good to be true. Well, its true, a Chapter 13 Bankruptcy provides you the opportunity to reorganize your debts to allow you to regain control of your financial future.

Chapter 13 is used most often to save a house from a foreclosure sale. Chapter 13 is also useful to eliminate some IRS debt and to establish an affordable plan to pay IRS debt that cannot be eliminated. Chapter 13 bankruptcy is available to debtors with regular income. A business cannot file Chapter 13. In addition, there are upper limits on the amount of the individual’s secured and unsecured debts in Chapter 13 cases.

If you are an individual or a sole proprietor, you can file a Chapter 13 bankruptcy to pay off all or part of your debts over three to five years. Rather than wiping out debts immediately, this option allows you to reorganize them so you have time to pay.

Most people who file Chapter 13 bankruptcies have:

• Mortgages or other loans they would like to bring current, so they don’t lose their homes or other property
• Taxes, child support or student loans that can’t be wiped out by Chapter 7 bankruptcy
• Moral convictions that all debts should be paid no matter how long it takes

For a Chapter 13 bankruptcy, you’ll need a stable income with disposable income (income left over after you pay the bare necessities of life such as shelter, food and utilities).