What's a Good Candidate for a Chapter 13?

Chapter 13 Is for Those Who Makes Too Much Money to Do a Chapter 7

Video Transcribed:  Oklahoma Bankruptcy Attorney Edward Kelley here, answering your bankruptcy questions with oklahomacitybankruptcyattorney.pro. Chapter 13, just like in last series, first, let’s talk about what’s a good candidate for an Oklahoma Chapter 13.

13 is there for the person who makes too much money to do a Chapter 7, and the person needs to save their home and/or vehicle, or other secured property, that they’re losing through foreclosure or repossession.

The person who goes into the 13, just like the 11, needs to be realistic. Do I have not just the resources, but do I have the discipline to do this? This is a five year deal. In some cases, just three years, but typically a five year deal.

We got to be honest. Is this something I can do? One way to ensure success is to do it through a wage order, and we’ll talk about that in the next series. I certainly always push for that, but you’re going to have to…

We all like to say, “Hey, I’m going to start working out next week or whatever.” This is one where you’re going to suffer some consequences if you don’t follow through. You get the federal government involved in your resolutions. That makes it a little different.

You got to have a little bit of discipline. You got to have the resources to make the payment that you come up with. For example, if you owe 10,000 on your house, sure 10,000 divided by 60 months might be a manageable payment, but you’ve also got to make your regular mortgage payment.

You need to work with your attorney, figure out what roughly you’re going to have to pay, and do you have the means to do it. You’re going to have to show that to the court. A plan’s got to be feasible, and you got to have the discipline to follow through. It’s certainly not as difficult as an 11, but there are some things you need to be successful in a 13.