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Chapter 13 Bankruptcy:

Structured Debt Relief That Protects What Matters

Chapter 13 bankruptcy is often the right choice for people who have steady income but are struggling to keep up with their debts. It can help stop foreclosure or repossession, give you time to catch up on missed payments, and organize your debts into a manageable repayment plan. Jackson Abdalla Law Group guides individuals and families in Elgin and the surrounding suburbs through Chapter 13 with clear, step-by-step support.

Who Is Chapter 13 For?

Chapter 13-sometimes called a "wage earner" or reorganization bankruptcy-is typically a good fit for people who:

  • HAVE REGULAR INCOME

  • ARE BEHIND ON THEIR MORTGAGE OR CAR PAYMENT

  • WANT TO STOP A FORECLOSURE OR REPOSSESSION

  • DO NOT QUALIFY FOR CHAPTER 7 BUT STILL NEED MEANINGFUL RELIEF

  • NEED TIME TO CATCH UP ON TAX DEBTS OR OTHER PRIORITY OBLIGATIONS

Rather than wiping out debt all at once, Chapter 13 creates a court-approved repayment plan that allows you to keep important assets while paying back what you can afford over time.

How the Chapter 13 Repayment Plan Works

 In Chapter 13, you propose a repayment plan-usually lasting three to five years-based on your income, expenses, and types of debt. Once approved by the court:

  • YOU MAKE ONE MONTHLY PAYMENT TO A CHAPTER 13 TRUSTEE

  • THE TRUSTEE DISTRIBUTES FUNDS TO YOUR CREDITORS ACCORDING TO THE PLAN

  • PAST-DUE AMOUNTS ON SECURED DEBTS (LIKE A MORTGAGE OR CAR LOAN) CAN BE SPREAD OUT OVER THE PLAN

  • CERTAIN PRIORITY DEBTS (SUCH AS MANY TAXES OR SUPPORT OBLIGATIONS) ARE PAID IN FULL

  • UNSECURED DEBTS (LIKE CREDIT CARDS OR MEDICAL BILLS) MAY BE PAID ONLY IN PART, WITH THE REMAINING BALANCE DISCHARGED AT THE END OF THE PLAN

This structure lets you regain control while staying current going forward.

Key Benefits of Chapter 13 Bankruptcy

Chapter 13 provides several protections that are not always available in Chapter 7:

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Stop Foreclosure

Filing a Chapter 13 case can stop a pending foreclosure and allow you to catch up on mortgage arrears over time.

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Prevent Repossession

You may be able to stop repossession of a vehicle and pay missed payments through the plan.

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Protect Non-Exempt Assets

If you own property that might be at risk in Chapter 7, Chapter 13 can allow you to keep it while paying part of its value to creditors.

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Manage Priority Debts

Tax debts and support arrears can often be paid in an orderly way through the plan.

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Consolidated Payment

Instead of juggling multiple bills, you make a single structured payment each month.

For many clients, these benefits make Chapter 13 a powerful tool for stabilizing their finances and protecting their home or car.

What Gets Paid Back vs. Discharged?

A common question is which debts must be repaid in full and which may be reduced or discharged at the end of the plan.


Generally, in Chapter 13:

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Paid in Full Through the Plan:

  • Ongoing mortgage payments and arrears (if you are saving your home)
  • Certain tax debts and domestic support obligations
  • Arrears on secured loans you are keeping (like a car loan)
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Partially Paid, Then Discharged:

  • Credit card balances
  • Medical bills
  • Many personal loans

Julia reviews your specific debts and explains how they are treated in a Chapter 13 case so there are no surprises.

Why You Need a Chapter 13 Bankruptcy Lawyer

Chapter 13 is more complex than Chapter 7 and requires a carefully drafted plan that meets legal requirements and is realistic for your budget. An experienced attorney helps by:

  • EVALUATING WHETHER CHAPTER 13 IS THE BEST OPTION FOR YOUR SITUATION

  • PREPARING A PLAN THAT COMPLIES WITH THE LAW AND FITS YOUR INCOME AND EXPENSES

  • FILING YOUR CASE AND HANDLING ALL REQUIRED DOCUMENTS AND DEADLINES

  • NEGOTIATING WITH THE CHAPTER 13 TRUSTEE OR CREDITORS IF CHANGES ARE NEEDED

  • ASSISTING WITH PLAN MODIFICATIONS IF YOUR CIRCUMSTANCES CHANGE OVER THE 3-5 YEARS

Julia works closely with clients throughout the entire Chapter 13 process, providing ongoing guidance-not just at the time of filing, but also as life events occur.

Local Experience for Elgin and Kane County Residents

Many Chapter 13 clients live in Elgin and the broader Kane County and Chicago suburban area. Julia's familiarity with local court practices and trustees helps make the process smoother and less intimidating, especially when facing urgent situations like foreclosure or repossession.

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Contact Us Today

If you are behind on your mortgage, worried about losing your car, or simply need a structured way to catch up on your debts, Chapter 13 may provide the protection and breathing room you need.