Chapter 13 Bankruptcy in Richmond, VA

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How Chapter 13 Bankruptcy Works in Richmond, Virginia 

Chapter 13 bankruptcy allows individuals and married couples who are struggling to keep up with monthly expenses to reorganize their debt through a court-approved repayment plan that fits their budget. Unlike Chapter 7, Chapter 13 focuses on repayment over time—typically three to five years—while providing powerful legal protections from creditors, including stopping foreclosure and repossession.

You may file a Chapter 13 bankruptcy individually or jointly as a married couple, depending on your circumstances. For many people in Richmond, Chapter 13 provides the structure and breathing room needed to regain financial stability while protecting important assets.

With a Chapter 7 bankruptcy discharge, most unsecured debts are eliminated without repayment. It is natural to ask why someone would choose Chapter 13 instead. In many cases, Chapter 13 offers important advantages that Chapter 7 cannot provide.

One of the most common reasons individuals file Chapter 13 bankruptcy is to stop a foreclosure or prevent vehicle repossession. A Chapter 13 repayment plan allows you to:

• Catch up on past-due mortgage payments
• Pay auto loan arrears over three to five years
• Keep your home and vehicle while regaining financial control

After filing, you must resume making your regular monthly mortgage or car payments, in addition to the repayment plan. If your vehicle was recently repossessed, Chapter 13 may require the lender to return it—provided the case is filed within specific legal time limits.

Another reason Chapter 13 may be appropriate is when you have significant equity in your home or other assets. In a Chapter 7 case, excess non-exempt equity may allow a bankruptcy trustee to sell property to repay creditors. Chapter 13 often provides a way to protect that equity while still resolving your debts.

Some individuals do not qualify for Chapter 7 bankruptcy because their income exceeds the legal limits. Eligibility is determined through a financial evaluation known as the Means Test. If your income is too high for Chapter 7, Chapter 13 may be the proper solution. This process will be fully explained during your initial consultation.

Choosing the right type of bankruptcy can be complicated, and the consequences of filing incorrectly can be serious. That is why it is important to speak with an experienced bankruptcy attorney who can evaluate your entire financial picture.

Contact Bruce W. White, P.C. today to discuss your individual situation. We offer a free, no-obligation phone consultation, so you have nothing to lose by getting accurate information.

📞 Call (804) 288-4328 to learn how Chapter 13 bankruptcy may help you protect your assets and regain financial stability.