Chapter 13:
Keep what's yours. Catch up on your terms.
Behind on your mortgage? Wages being garnished? Chapter 13 stops the bleeding the day we file — then rolls what you owe into one court-protected repayment plan you can actually live with.
The reorganization tool for people with income and something to protect.
Chapter 13 is the chapter of the Bankruptcy Code built for people who have regular income but have fallen behind — on a mortgage, a car loan, taxes, or credit cards that snowballed after a job loss, illness, or divorce. Instead of liquidating anything, Chapter 13 consolidates your debts into one structured repayment plan, typically three to five years, supervised by the U.S. Bankruptcy Court for the District of New Jersey.
The moment your case is filed, a federal court order called the automatic stay takes effect. Foreclosure sales stop. Wage garnishments stop. Collection calls, lawsuits, and repossessions stop. That protection isn’t something we have to ask creditors for — it’s automatic, and it gives us the breathing room to put a real plan in place.
When you complete the plan, remaining qualifying unsecured debts are discharged — legally wiped out. You’ve caught up on the debts that matter, kept your property, and earned your fresh start.
What Chapter 13 can do for you.
Stop foreclosure
Filing stops a sheriff's sale in its tracks. Your plan can cure the mortgage arrears over time — or buy you the time to negotiate a loan modification that brings you current.
End wage garnishment
Garnishments must stop when your case is filed. You keep your full paycheck while the plan handles your creditors — on the court's terms, not theirs.
Keep your car
Catch up on missed car payments through the plan instead of losing the vehicle. In some cases the loan itself can be restructured to more favorable terms.
Protect your assets
Chapter 13 can protect property that might be at risk in a Chapter 7 — home equity, savings, family property. You repay a portion of the debt; you keep what's yours.
Handle taxes & support arrears
Certain debts that can't be erased — like recent taxes or support arrears — can be paid through the plan over time, without penalties piling on and without collectors at the door.
Shield your co-signers
Chapter 13 has a special protection Chapter 7 doesn't: the co-debtor stay. Creditors generally can't pursue the family member who co-signed while your plan is in effect.
How it works — start to fresh start.
Every case is different, but the road map is the same. I handle the legal work; you make one plan payment a month.
1. Free consultation & game plan
We sit down (in person or by phone), go through your income, debts, and goals, and decide honestly whether Chapter 13, Chapter 7, or a non-bankruptcy option serves you best.
2. We file your case Protection starts here
The automatic stay takes effect the moment your petition is filed with the U.S. Bankruptcy Court for the District of New Jersey. Foreclosure, garnishments, lawsuits, and collection calls stop.
3. We propose your repayment plan
I build a three-to-five-year plan around your actual budget: mortgage or car arrears get cured, priority debts get paid, and unsecured creditors receive what the law requires — often only a fraction of what’s owed.
4. Meeting of creditors & confirmation
You attend one short meeting with the Chapter 13 trustee (I’m beside you the whole time). Then the court confirms your plan, making it binding on every creditor.
5. Finish the plan — debts discharged
Make your plan payments, and at the end the remaining qualifying unsecured debt is discharged. You’re current on your house, your car, and your life.
Chapter 13 or Chapter 7 — which one fits?
It depends on your income, your assets, and what you’re trying to protect. Here’s the shorthand — we’ll pin it down together at your consultation.
Chapter 13 tends to fit when you…
- Have regular income and can fund a monthly plan payment
- Are behind on a mortgage or car and want to keep it
- Have equity or assets you want to protect
- Owe recent taxes or support arrears that need a structured payoff
- Have a co-signer you want shielded from collection
- Don't qualify for Chapter 7 because of income or a prior filing
Chapter 7 tends to fit when you…
- Need the fastest fresh start — typically a few months, not years
- Have mostly unsecured debt: credit cards, medical bills, personal loans
- Have limited income and pass the means test
- Aren't trying to cure arrears on property you want to keep
- Have little or no non-exempt property at risk
Not sure which column sounds like you? That’s exactly what the free consultation is for. Learn more about Chapter 7 →
Chapter 13 questions, answered.
Keeping your property is usually the whole point of choosing Chapter 13. The plan lets you cure missed mortgage or car payments over time while you stay current going forward. As long as you make the plan payments, your home and vehicle are protected.
The automatic stay takes effect the moment your case is filed. We notify your employer’s payroll department and the garnishing creditor immediately. In most cases the very next paycheck is whole.
Usually not. Secured arrears (mortgage, car) and priority debts (recent taxes, support) get paid through the plan, but general unsecured creditors — credit cards, medical bills, personal loans — often receive only a portion, based on your income and assets. Whatever qualifying unsecured debt remains at the end of the plan is discharged.
It’s built from your actual budget: your income, your reasonable living expenses, the arrears being cured, and what the law requires unsecured creditors to receive. There’s no one-size-fits-all number — which is why we go through your finances carefully before filing, so the payment is one you can sustain.
If you’re facing garnishment or foreclosure, your credit is already taking damage every month. A Chapter 13 filing is reported, but it also stops the ongoing defaults — and many clients begin rebuilding credit during the plan and qualify for financing again surprisingly soon after discharge. I’ll give you a realistic picture for your situation, not a scare story.
The two basic requirements are regular income to fund a plan and total debts under the limits set by the Bankruptcy Code — limits most consumers are well within. We’ll confirm both, quickly, at your free consultation.
“I was in a dire financial situation and Dan saved my life. No situation is impossible for Dan to rectify. I’d strongly recommend his services, even to my own mother.”
The foreclosure clock is ticking. The fix takes one call.
The earlier we file, the more options you have. The consultation is free — and you’ll leave it knowing exactly where you stand.