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Chapter 13 Bankruptcy

The purpose of Chapter 7 and Chapter 13 bankruptcies is to help debtors who are having financial problems. It’s important that you consult with an experienced bankruptcy lawyer to determine if you qualify for bankruptcy or if there are other options to consider, and if you decide to file, which type is best for you. At Lorin D. Hay, P.C. we assist people living in and around Chesapeake, Virginia Beach, Norfolk, Newport News, Portsmouth, Suffolk, Hampton and the Eastern Shore of Virginia with bankruptcy matters. Contact us online or by calling our Virginia Beach office at

Debt Repayment Plan Attorney Virginia Beach Virginia

Chapter 13 bankruptcy is a personal reorganization or repayment plan in which you make monthly payments to a trustee appointed by the bankruptcy court. The trustee then pays your creditors at least a portion of what you owe. At the successful completion of a Chapter 13 whatever listed debt that has not been paid by the trustee (with a few exceptions such as domestic support obligations, certain “long-term debt” and student loans, etc.) is discharged. Of course, in order to keep real estate you must continue to pay your mortgage but the Chapter 13 can be used to catch up on your mortgage payments without risk of foreclosure.

To file a Chapter 13, you pay only the court costs and a portion of the attorney fees. The balance of the attorney fee is paid by the trustee from your Chapter 13 plan payments.

Some of the most common reasons debtors choose to file a Chapter 13 are:

  • To stop a home foreclosure or vehicle repossession
  • To pay non-dischargeable debts such as recent taxes or student loans
  • To avoid a second and/or third mortgage

Contact our law firm to learn more about debt liquidation.