Chapter 13 Bankruptcy Attorneys serving Philadelphia & new Jersey
Call Now: 215-735-3377
If you are behind on your mortgage, car payments, or other debts but want to keep your property, Chapter 13 bankruptcy may give you the time and structure you need to catch up. Call The Parrish Law Firm at 215‑735‑3377 to speak directly with Attorney Demetrius J. Parrish Jr. about a repayment plan that fits your situation.
What Is Chapter 13 Bankruptcy in Pennsylvania?
Chapter 13 bankruptcy is a court‑supervised repayment plan that lets you reorganize your debts over three to five years while keeping your home, car, and other assets. Instead of eliminating most debts quickly like Chapter 7, Chapter 13 focuses on creating one affordable monthly payment based on your income and necessary expenses.
This option is often called a “wage earner’s plan” because it is designed for people with regular income who can pay something toward their debts but need time and protection from creditors.
Who Should Consider Chapter 13 Bankruptcy?
Homeowners Facing Foreclosure
Chapter 13 can be especially powerful if you are behind on your mortgage and want to stop foreclosure. Once your case is filed, the automatic stay goes into effect and can:
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Halt a scheduled sheriff’s sale
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Stop ongoing foreclosure proceedings
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Give you time to pay past‑due mortgage amounts over three to five years
You must also stay current on your regular mortgage payments after filing, but Chapter 13 gives you the structure and breathing room to catch up.
People With Steady Income and Debt They Can Repay Over Time
Chapter 13 may be a good fit if:
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You have regular income but cannot keep up with minimum payments
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You do not qualify for Chapter 7 due to higher income
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You have significant non‑exempt assets you want to protect
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You have tax debts or other obligations that need to be repaid over time
​​During your consultation, Attorney Parrish will help you compare Chapter 13, Chapter 7, and non‑bankruptcy options so you can choose the path that makes the most sense.
To find out if Chapter 13 is right for you, call 215‑735‑3377 for a free, confidential evaluation.
How Chapter 13 Works in Pennsylvania
One Consolidated Monthly Payment
In Chapter 13, you propose a repayment plan that typically lasts three to five years. You make one monthly payment to a bankruptcy trustee, who then distributes funds to your creditors according to the terms of your plan.
Your payment is based on:
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Your disposable income (what is left after reasonable living expenses)
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The type and amount of your debts
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The value of any non‑exempt property
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The required length of your plan
​Some debts must be paid in full, while others may only receive a partial payment or even no payment at all.
Debts Treated in Chapter 13
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Priority debts (such as recent taxes, child support, and alimony) must usually be paid in full through your plan.
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Secured debts (such as mortgage arrears and car loan arrears) can often be spread out over the length of the plan to help you catch up.
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Unsecured debts (such as credit cards and medical bills) may receive only a percentage of what you owe, depending on your budget and assets. Any remaining eligible unsecured debt may be discharged at the end of your plan.
The Chapter 13 Bankruptcy Process in Pennsylvania
Step 1 – Free Consultation and Budget Review
Your first step is a confidential phone call with Attorney Parrish. He will review your income, expenses, debts, and goals to determine whether Chapter 13 is a realistic and beneficial option.
Step 2 – Pre‑Filing Requirements and Plan Drafting
Before filing, you must:
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Complete a brief credit counseling course from an approved provider
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Gather financial documents, including pay stubs, tax returns, bank statements, and a list of all debts and assets
​Using this information, the firm prepares your Chapter 13 petition and drafts a proposed repayment plan tailored to your situation.
Step 3 – Filing and the Automatic Stay
Once your case is filed:
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The automatic stay immediately stops most collection activities
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Foreclosure proceedings, repossession efforts, wage garnishments, and lawsuits are put on hold
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Creditors must deal with you through the bankruptcy process instead of direct collection efforts
You begin making your proposed plan payments soon after filing, even before the plan is formally approved.
Step 4 – Meeting of Creditors (341 Meeting) and Confirmation Hearing
About 30–45 days after filing, you attend a brief meeting of creditors, where the trustee asks questions about your finances and your plan. Your attorney will attend with you.
​Later, at a confirmation hearing, the judge reviews your plan to decide whether it meets legal requirements. Creditors can object, but many plans are approved after negotiation and adjustments.
Step 5 – Making Plan Payments and Completing the Plan
Once your plan is confirmed, you continue making your monthly payments for the duration of the plan. You must also stay current on any ongoing obligations like your mortgage and car payment.
At the end of the plan, if you have met all the requirements, the court issues a discharge for remaining eligible unsecured debts.
If you are ready to explore a structured path out of debt, call 215‑735‑3377 to talk about a Chapter 13 plan that could work for you.
How Chapter 13 Can Help You Keep Your Home and Car
Stopping Foreclosure and Catching Up on Mortgage Payments
Chapter 13 is one of the most effective tools for homeowners who have fallen behind on mortgage payments but want to keep their homes. Your repayment plan can:
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Spread past‑due mortgage amounts over three to five years
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Stop a sheriff’s sale as soon as your case is filed (if it is filed in time)
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Give you a structured way to bring your loan current while protecting you from most collection actions
​You must still pay your regular mortgage payments going forward, but the plan can make catching up on arrears realistic.
Preventing Car Repossession and Managing Auto Loans
If you are behind on your car payment, Chapter 13 can:
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Stop repossession when the case is filed
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Allow you to catch up on missed payments through the plan
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In some cases, adjust the balance or interest rate under specific rules and circumstances
​This can help you keep reliable transportation while dealing with your other debts.
Chapter 13 vs. Chapter 7: Which Is Better for You?
The right chapter depends on your income, debt type, and goals:
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Choose Chapter 13 when you want to keep a home or car you are behind on, have income to support a plan, or have non‑exempt assets that would be at risk in Chapter 7.
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Choose Chapter 7 when you have limited income, mostly unsecured debt, and no need for a long‑term repayment plan.
​Attorney Parrish will compare both options with you during your consultation so you can make an informed decision rather than guessing
Life During and After a Chapter 13 Plan
During your plan, you live on a realistic, court‑approved budget while making your monthly payment. Although this requires discipline, many people find relief knowing:
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Collection calls and lawsuits have stopped
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There is a clear timeline and structure
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They are actively working toward becoming current and debt‑free
​After you complete your plan and receive a discharge, you can focus on rebuilding credit, saving, and planning for the future with a much healthier financial foundation.
Common Questions About Chapter 13 Bankruptcy in Pennsylvania
How Much Will My Chapter 13 Payment Be?
Your payment depends on your disposable income, the amount of priority and secured debts that must be paid, and the value of any non‑exempt assets. There is no one‑size‑fits‑all number. During your consultation, Attorney Parrish will estimate what your payment might look like based on your financial information.
How Long Does a Chapter 13 Plan Last?
Most plans last either three years (36 months) or five years (60 months). The length of your plan typically depends on your income compared to the state median and what is needed to meet legal requirements for your debts.
What Happens If I Miss a Payment?
If you miss a payment, you should contact your attorney immediately. In some cases, your plan can be modified to reflect changes in your income or expenses. Ignoring missed payments can lead to case dismissal, so early communication is critical.
Will I Be Able to Get Credit Again?
Chapter 13 will appear on your credit report, but many people find that completing a plan and reducing debt makes it easier over time to qualify for reasonable credit. Lenders may view successful completion of a Chapter 13 plan as a positive sign of responsibility.
If you have questions about how Chapter 13 would affect your budget and your future, call 215‑735‑3377 to talk with Attorney Parrish.
Talk With a Philadelphia Chapter 13 Bankruptcy Lawyer Today
If you are falling behind on payments, facing foreclosure or repossession, or juggling more debt than your income can support, Chapter 13 may give you a structured path to catch up and protect what matters most.
Call The Parrish Law Firm at 215‑735‑3377 to speak directly with Attorney Demetrius J. Parrish Jr. about Chapter 13 bankruptcy and other debt relief options in Philadelphia and across Pennsylvania. Your consultation is free, confidential, and focused on giving you clear, practical next steps.
