Philadelphia, PA Chapter 13 Bankruptcy Lawyers
When you are behind on your mortgage, worried about your car being repossessed, or dreading the next call from a collector, it can feel like there is no way out. Chapter 13 bankruptcy gives many Philadelphia homeowners and working families a way to stop the pressure, catch up on what they owe over time, and keep the property they depend on.
The Philadelphia Chapter 13 bankruptcy lawyers at Young, Marr, Mallis & Associates have helped thousands of people across Philadelphia and Bucks County get their debts under control. We look at your income, your debts, and what you want to protect, then build a repayment plan that fits your real budget. If you are facing a sheriff sale, a repossession, or a wage garnishment, call us at 215-639-5297 for a free consultation.
About Young, Marr, Mallis & Associates
Young, Marr, Mallis & Associates is a Pennsylvania and New Jersey law firm focused on bankruptcy, criminal defense, and disability law. Our bankruptcy attorneys have handled more than 10,000 consumer bankruptcy filings under both Chapter 7 and Chapter 13, and we represent clients in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, which hears cases from Philadelphia, Bucks County, and the surrounding counties. With an office on Bustleton Avenue in Northeast Philadelphia, we work with debtors in every part of the city, and we take the time to explain each step so you always know where your case stands.
What Is Chapter 13 Bankruptcy?
Chapter 13 is a type of personal bankruptcy that lets you reorganize your debts instead of liquidating your assets. It gets its name from Chapter 13 of the U.S. Bankruptcy Code, and it is often called a “wage earner’s plan” because it is built around your regular income.
When you file, you propose a repayment plan that lasts three or five years. The length depends largely on how your household income compares to the Pennsylvania median: filers below the median can usually propose a three-year plan, while filers above it generally need a five-year plan. You make one monthly payment to the Chapter 13 trustee, a court-appointed official who distributes the money to your creditors according to the plan the court approves.
Your plan must pay certain debts in full, such as recent tax debts and domestic support obligations, and must also cover any missed mortgage or car payments you want to catch up on. Many unsecured creditors, such as credit card companies and medical providers, receive only a portion of what they are owed. When you complete the plan, the court discharges most of the remaining eligible debt.
Who Can File Chapter 13?
Chapter 13 is available to individuals, including self-employed people and sole proprietors, who have regular income and whose debts fall under the limits set by federal law. Regular income can come from many sources, including:
- Wages, salary, or commissions
- Self-employment or small business income
- Social Security, disability, or pension benefits
- Spousal support or other regular payments
Before filing, you must complete a credit counseling course from an approved provider within 180 days of your case, and you must finish a debtor education course before you receive your discharge. We help you take care of both.
How Chapter 13 Protects Your Home, Car, and Paycheck
The moment your Chapter 13 case is filed, a court order called the automatic stay takes effect. It requires most creditors to stop collection activity right away, including foreclosures, sheriff sales, repossessions, wage garnishments, lawsuits, utility shutoffs, and collection calls.
From there, Chapter 13 gives you tools that Chapter 7 does not:
- Catching up on your mortgage. You can spread your missed mortgage payments over the life of your plan while keeping up with your regular monthly payments, which can stop a foreclosure and let you keep your home.
- Keeping your car. Missed car payments can be caught up through the plan, and in some cases the amount you owe on an older car loan can be reduced to the vehicle’s actual value.
- Protecting co-signers. In most cases, creditors cannot pursue a friend or family member who co-signed a consumer debt while your plan is in place.
- Handling tax debt. Many tax debts can be paid over time through the plan without the added penalties and aggressive collection that come with dealing with the IRS on your own.
- Protecting property you would otherwise lose. Because you are repaying creditors through a plan, you can often keep property that would not be protected in a Chapter 7 case.
If your home is already scheduled for a sheriff sale, timing matters. We can often prepare an emergency bankruptcy filing to stop the sale, then complete the rest of your paperwork afterward.
Which Debts Chapter 13 Can Eliminate
When you complete your plan, the court can discharge many of the debts that were not paid in full, including:
- Credit card balances
- Medical, dental, and hospital bills
- Personal loans and payday loans
- Past-due utility bills
- Debts left over from a closed small business
- Deficiency balances after a repossession
- Older income tax debts that meet specific requirements
Some debts generally cannot be discharged, such as child support, alimony, most student loans, recent tax debts, and criminal fines. Even when a debt cannot be discharged, Chapter 13 can still give you a structured way to pay it while you are protected from collection.
Chapter 13 vs. Chapter 7 Bankruptcy
Chapter 7 is often faster and can wipe out qualifying debts in a few months without a repayment plan, but it does not offer a way to catch up on a mortgage or car loan, and it requires you to qualify under the means test. Chapter 13 takes longer but gives you more control over what you keep. For many Philadelphia homeowners who are behind on their mortgage or have income above the Chapter 7 limits, Chapter 13 is the better fit. If you are trying to decide between the two, you can also learn more about how Chapter 7 bankruptcy works in Philadelphia, and we will help you compare both options during your consultation.
Options for Philadelphia Homeowners Facing Foreclosure
Philadelphia homeowners have resources that people in many other cities do not. Before a sheriff sale moves forward, many homeowners can take part in the city’s mortgage foreclosure diversion program, which brings homeowners and lenders together to look for alternatives to foreclosure. When diversion does not resolve the problem, Chapter 13 can give you the time and legal protection to catch up. Our attorneys also handle foreclosure defense and can help you decide which approach makes the most sense for your situation.
How Our Chapter 13 Attorneys Help
A Chapter 13 case lasts years, and the details you get right at the beginning shape how smoothly it goes. When you work with our firm, we:
- Review your income, expenses, debts, and assets to confirm Chapter 13 is the right choice
- Calculate a realistic monthly payment that you can keep up with
- Prepare and file your petition, schedules, and repayment plan
- Stand with you at the meeting of creditors and handle objections from the trustee or creditors
- Seek changes to your plan if your income or expenses change during the case
- Guide you through the final steps to your discharge
Frequently Asked Questions About Chapter 13 Bankruptcy in Philadelphia
How long does a Chapter 13 bankruptcy last?
A Chapter 13 plan lasts three or five years. Whether you qualify for a three-year plan depends mainly on how your household income compares to the median income for a household of your size in Pennsylvania.
Can Chapter 13 stop a sheriff sale in Philadelphia?
Yes. Filing a Chapter 13 case triggers the automatic stay, which generally stops a scheduled sheriff sale. Your plan then lets you catch up on the missed mortgage payments over time. The sooner you contact us before the sale date, the more options you have.
Will I keep my house and car in Chapter 13?
Most people who file Chapter 13 keep their home and car, as long as they make their plan payments and stay current on their regular payments going forward. Keeping your property is one of the main reasons people choose Chapter 13 over Chapter 7.
What happens if I miss a Chapter 13 plan payment?
Missing a payment does not automatically end your case, but the trustee can ask the court to dismiss it if payments fall behind. If you lose your job or face an unexpected expense, contact us right away. In many cases, we can ask the court to modify your plan so your case can continue.
How does Chapter 13 affect my credit?
A Chapter 13 bankruptcy can stay on your credit report for up to seven years from the filing date. Many people see their credit begin to improve during the case because their debts are under control and they are making steady, on-time payments.
How much does it cost to file Chapter 13?
There is a court filing fee, and attorney fees in Chapter 13 can often be paid in part through your repayment plan rather than all up front. We explain all costs clearly during your free consultation before you decide anything.
Talk to a Philadelphia Chapter 13 Bankruptcy Lawyer Today
Living with debt takes a heavy toll on you and your family, but you do not have to keep facing it alone. With step-by-step guidance from the bankruptcy attorneys at Young, Marr, Mallis & Associates, you can stop the collection pressure, protect your home and car, and start building a stable financial future. We work with residents throughout Philadelphia and Bucks County, and calls are answered 24 hours a day, seven days a week. Contact us online or call 215-639-5297 for a free consultation.