What Is Chapter 13 Bankruptcy?

What Is Chapter 13 Bankruptcy and How Does It Work?

What is Chapter 13 bankruptcy? Simply put, it also is known as a wage earner’s plan, and it enables personal individuals with a regular income to develop a plan to repay part or all of the debts. You will be required to fill in a myriad of bankruptcy forms, but our attorneys can assist with that. When it comes to creating the plan, you will propose a payment plan which is then filed with the schedules commencing the case. Every creditor will receive a summary of the plan. The plan is required to meet two tests: the best efforts test and the interest of creditors test. The best efforts test means the plan must make provision for unsecured creditors with a payment equal to your monthly income. The best interest of creditors test means unsecured creditors must receive a minimum on their claim as they would have received under Chapter 7. With Chapter 13, your real estate is safe.

What Is Chapter 13 BankruptcyWhat Is Chapter 13 BankruptcyWhat Is Chapter 13 BankruptcyWhat Is Chapter 13 Bankruptcy
What Is Chapter 13 Bankruptcy

Chapter 13 Bankruptcy Forms and the Role of the Trustee

Once you file your Chapter 13 bankruptcy forms in the bankruptcy court, the trustee will act as the disbursing agent for your payments. He or she will collect your payments and pay them on to the creditors as provided by your personal payment plan. The trustee further reviews the plan and will challenge those that don’t, in their opinion, meet the above-mentioned tests as set out in the Bankruptcy Code. If you and the trustee fail to agree on the terms of your plan, a judge will intervene to decide if the plan may be confirmed. Once it is approved, the trustee pays creditors according to your plan.

More About Personal Bankruptcy Chapter 13

Once your payment plan has been approved by the bankruptcy court and your real estate is safe, and all the relevant forms have been completed, you will be obligated to make your first payment within 30 days of filing for personal bankruptcy Chapter 13. Payments will begin before your first meeting with creditors and will continue even when objections are pending. You will be required to make payments in certified funds, such as money orders or cashier’s checks.

Chapter 13 Real Estate – How to File for Bankruptcy

When you file for Chapter 13 real estate bankruptcy, you will be required to fill-in bankruptcy forms and provide personal information and information regarding your real estate. The process works like this:

  • Determine if Chapter 13 is appropriate for your circumstances
  • Understand what will happen to your assets
  • Know which loans will not be modified or discharged
  • Decide to file for bankruptcy
  • Decide whether or not to seek the assistance of an attorney
  • Attend credit counseling
  • File a petition
  • Pay your fees
  • File a repayment plan
  • Attend meeting of creditors
Call for a Free Initial
Contact our office today to discuss your bankruptcy or family law questions. You can reach us by phone at 610-489-3041 or via e-mail. We will respond promptly to all phone calls and emails, within 24 hours.
Or you can just use the contact form below.


I have dealt with Matt for a few years for a couple of matters for myself and for my mother-in-law. Matt has always been a man of his word; anything he said he would do was done as expected. He provided timely and accurate advice when requested. Matt never pushed services that were not required and at certain times he recommended less costly services that would achieve the same results. I highly recommend him as very honest and ethical. He always disclosed fees in advance and there were never any "surprise" fees.— jimcar13
Mr Nahrgang was easy to work with, and did an excellent job with my case. Though my case turned out to be more complex than we had originally realized, he handled every complication promptly and competently.— eyedoc89
I was first recommended to Matthew Nahrgang by a friend. I was having serious financial issues at the time. I went to Matt and had a conversation which set my mind at ease. He is straight to the point, honest and tells you how it is. No frills kind of guy. He also is confident in his business and knows the law very well, which is what set me at ease. It was not near a big deal as I thought it to be. He does what he says he is going to do and does it in a timely manner. I have used Matt a few times now and I've recommend him to many of my friends and business acquaintances. I highly recommend Matthew Nahrgang!— my1leelee
In relation to my bankruptcy and in retrospect, I was thankful that I had discovered Mr. Nahrgang and had engaged him to respresent me in my case. I found him to be respectful, understanding, highly knowledgeable and trustworthy. I appreciate all that he did on my behalf and have recommended him to friends and family.— Orangefit09
Areas we serve
The Collegeville, Pennsylvania based law firm of Nahrgang & Associates, P.C. represents clients in the counties of Montgomery, Bucks, Delaware, Chester, Berks, Philadelphia, Lancaster, Northampton and Lehigh including the communities of Collegeville, Jenkintown, Doylestown, West Chester, Reading, Media, Allentown, Norristown, Phoenixville, Quakertown, Pottstown, Lansdale, Royersford, Plymouth Meeting, Exton, Conshohocken and King of Prussia, PA.
Our location
Nahrgang & Associates, P.C
35 Evansburg Road, Suite 3 Collegeville, PA 19426
Phone: 610-489-3041
Fax: 610-489-3042