Published on:

St Louis Bankruptcy Attorney: Why Would Someone Want To File A Chapter 13 Repayment Plan?


There are many reasons why someone (or a married couple) would want to file a St Louis Chapter 13 bankruptcy. Most people, however, are unaware of the benefits that come with this chapter of bankruptcy (because there are certain bonuses that do not come with a Chapter 7). Below is fuller discussion of this topic:

A Ch13 is described as a repayment plan over the course of three (3) to five (5) years during which certain debts are paid back. One common reason for a Ch13 filing is when you own real estate, but you have fallen behind on the mortgage payments (and now you are facing a foreclosure). If you want to keep the property, then the best option would be to file a Ch13, which would stop the foreclosure proceeding, and get you into a repayment plan to you caught up (but spread out over a period of years).

Another common scenario would be a car repossession. If your car is repo’ed, and you want to get it back, the best option is a St Louis Chapter 13. The filing of such a case will force the car creditor to give the car back to you, and the balance of the car loan is paid back (but at about 4% interest, which is often times much lower than the interest rate you are currently dealing with).


Or if you have a wage garnishment that you are trying to get rid of (or a bank levy, or if a creditor(s) has filed a lawsuit against you), the filing of the Ch13 will put an immediate end to this activity. And because you will be making monthly payments, that will positively reflect upon your credit bureau (and will result in your credit score rising by quite a bit).

But the way for you to understand how the mechanics of a bankruptcy work (regardless of which chapter) is to get in touch with us!! Give us a call, shoot us a text, send us an email, or fill out an online form! We will answer all your questions, describe your full range of options, and help guide you through the process from start to finish!

The affordable St. Louis bankruptcy attorneys at The Bankruptcy Company have been saving and protecting people’s assets for years. Our goal is to make sure that you keep the assets and property you want, discharge the debts that you want to get rid of, and do it all at an affordable cost to you. All phone conversations and office consultations are free of charge.

Contact Information