How Chapter 13 Bankruptcy Can Help You Keep Your Assets While Managing Debt

A Fresh Start Without Losing Everything

Facing overwhelming debt can feel like you’re trapped with no way out. The fear of losing your home, car, or other valuable assets might make you hesitate to take action. But what if there was a way to regain control of your finances without giving up everything you’ve worked for? 

Chapter 13 bankruptcy in North Carolina offers a structured plan to help you manage debt while keeping your most important assets intact.

Unlike Chapter 7 bankruptcy, which often requires liquidating assets to repay creditors, Chapter 13 bankruptcy allows you to keep  assets through  a repayment  plan. This option allows you to catch up on missed or past due payments and restructure your debt over time, providing relief without forcing you to part with your home or vehicle. Most people who file Chapter 13 bankruptcy do so specifically to keep assets like their home or car. 

If you’re considering bankruptcy in North Carolina, Biggs Law Firm can help. Our experienced team can help you understand the differences between Chapter 7 and Chapter 13 bankruptcy, and which one may be right for your situation.

How Chapter 13 Bankruptcy Protects Your Assets

Restructuring Debt Into a Manageable Payment Plan

Chapter 13 bankruptcy works by consolidating your debts into a court-approved repayment plan that lasts between three and five years. Instead of making multiple payments to different creditors, you may make a single monthly payment based on your income and reasonable living expenses.

This structure helps you stay on track financially while keeping assets like your house and car. As long as you maintain the payments outlined in your repayment plan, creditors cannot seize your property.

Stopping Foreclosure and Repossession

One of the biggest benefits of Chapter 13 bankruptcy is the automatic stay—a legal protection that stops foreclosure proceedings, repossessions, and lawsuits as soon as your case is filed. If you’ve fallen behind on mortgage or car loan payments, Chapter 13 gives you time to catch up while preventing lenders from taking action against you.

Even if foreclosure proceedings have already started, Chapter 13 can put them on hold, allowing you to create a plan to bring your loan current over time.

Protecting Non-Exempt Property

In Chapter 7 bankruptcy, non-exempt assets may be sold to repay creditors. However, Chapter 13 allows you to keep non-exempt property as long as your repayment plan meets legal requirements. This means you don’t have to worry about losing valuable assets like rental properties, business equipment, or sentimental belongings.

Who Qualifies for Chapter 13 Bankruptcy?

To file for Chapter 13 bankruptcy, you must meet certain requirements:

• Regular Income: You need a steady source of income to make monthly payments under the repayment plan.
• Debt Limits: Your secured debts (like mortgages and car loans) and unsecured debts (like credit card balances and medical bills) must be within the limits set by the bankruptcy court.
• No Recent Bankruptcy Discharges: If you have previously filed for Chapter 7 or Chapter 13 bankruptcy, you may need to wait a certain period before filing again.

Is Chapter 13 Bankruptcy Right for You?

If you’re struggling with debt but want to keep your home, car, and other valuable assets, Chapter 13 bankruptcy may be the best path forward. This option provides a structured way to regain financial stability while preventing creditors from seizing your property.

At Biggs Law Firm, we understand how overwhelming financial challenges can be, and we are here to guide you through the process. Our team can help you explore your options, create a realistic repayment plan, and work toward a more secure financial future.