Contact Us

Please fill out the form below and our attorney will contact you.



Monday-Sunday 8:00am-11:00pm

Our Office

New York Chapter 13 Bankruptcy Attorneys Seek Relief for Debtors

Knowledgeable lawyers work to develop fair repayment plans

Chapter 13 Bankruptcy is designed for an individual who has a regular source of income but is unable to meet their current debt obligations. This solution enables the debtor to keep their valuable assets, such as houses and cars, by adhering to a plan that repays creditors over time – usually three to five years. The accomplished attorneys at Goldberg & Lindenberg, P.C. represent clients from New York City, as well as Westchester and Nassau counties, in Chapter 13 matters. We assist with the creation of a fair debt repayment plan, negotiating with creditors and communicating with the bankruptcy trustee.

Eligibility rules for Chapter 13 bankruptcy

A consumer might also seek protection under Chapter 13 if they do not qualify for Chapter 7 relief. Regardless of why someone is seeking this type of relief, the court will either approve or disapprove the debtor’s repayment plan at a confirmation hearing. It must meet the following confirmation requirements under the Bankruptcy Code:

  1. The filer must live, do business or own property in the United States
  2. The filer must have a regular income
  3. Total unsecured debts cannot exceed $419,175
  4. Total secured cannot exceed $1,257,850
  5. The filer cannot be a stockbroker or a commodity broker
  6. The filer cannot be a debtor in another bankruptcy case that was dismissed within the last 180 days on certain technical grounds.

The debt limits change slightly every year, and the figures listed above are based on the 2021 standard.

Who files for Chapter 13 bankruptcy?

People sometimes refer to Chapter 13 bankruptcy as the wage earner’s plan. It is meant for people who have consistent income but still need some assistance to catch up to past obligations. With so many families living from paycheck to paycheck, it is easy to see how a sudden event such as a medical problem, temporary job loss, divorce or car accident can present a tough financial challenge. Chapter 13 debt repayment gives people the chance to catch up while holding on to their home and car. Corporations, partnerships and limited liability companies may not file under Chapter 13. A husband and wife may file jointly under Chapter 13 if each of them meets the requirements. After reviewing your situation, we’ll assess if this option is right for you. 

What is a Chapter 13 repayment plan?

Once it is approved, your Chapter 13 repayment plan will last between three and five years. Our firm will look at your income, expenses and debts to create a budget that minimizes the disruption to your daily life as you pay down what you owe. We work on your behalf to lower interest rates, cancel penalties, lengthen repayment terms, modify mortgages and take other steps to maximize the likelihood of a successful outcome. As long as you abide by the terms of the repayment schedule, any remaining debt will be eliminated once the plan timeframe is complete.

Attorneys advise on options for debt settlement

As Chapter 13 bankruptcy involves a debt repayment plan, some people might not see much of a distinction between that type of filing and informal debt settlement. However, you should understand the differences before you determine how to proceed. Without a bankruptcy filing, no automatic stay is applied, so collectors continue to press you for payment during the negotiation process. Though some might opt to negotiate with creditors individually to avoid the effect of a bankruptcy on their credit rating, the lack of an overall plan could lead to further problems down the road.  

Contact a New York Chapter 13 bankruptcy lawyer for a free consultation

Goldberg & Lindenberg, P.C. represents New York clients in Chapter 13 bankruptcy proceedings and other debt relief matters. Please call 212-921-1600 or contact us online to schedule a free initial consultation regarding a potential repayment plan. We are located in Midtown Manhattan.