Chapter 13 bankruptcy is a proceeding for individuals (and their spouses) with regular income who have unsecured debts of less than $307,675 and secured debts of less than $922,975. A Chapter 13 bankruptcy is known as a reorganization proceeding, whereby the debtor will attempt to repay some debt and retain non-exempt assets. Many debtors use a Chapter 13 to repay debts they have fallen behind on such as mortgage payments or certain types of tax debt. In a reorganization case, the debtor will normally have anywhere from three to five years to repay a portion of his or her debt. Repayment in Chapter 13 can range from 10% to 100% depending on what type of debt the individual has and the amount of his or her income.

Reasons for filing...

Reasons for filing a Chapter 13 bankruptcy include protecting homes from foreclosure or cars from repossession, a sincere desire to repay debt or a potentially less onerous effect

on the ability to obtain new credit. The Chapter 13 debtor’s reorganization is achieved by the proposal of a repayment plan to the bankruptcy court, which if successfully performed entitles the Chapter 13 debtor to retain non-exempt assets and receive a discharge of any remaining debt after completion of the repayment plan.


If you would like to discuss options available to you under Chapter 13 of the United States Bankruptcy Code, please contact:

Attorney John Hyams at
717-766-5300 (Mechanicsburg)
717-533-0700 (Hummelstown)
717-520-8082 (Harrisburg)
or email us at

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