Chapter 13 Bankruptcy in Milwaukee | Daylight Bankruptcy Law

Typical length: 3 to 5 years set by your income and your goals
Flat fee: From $4,500 as little as $500 before filing
How you pay: One payment each month, to the trustee

What it is, in plain words

Chapter 13 is a court-approved repayment plan. You make one monthly payment to a trustee, who pays your creditors under the plan. Missed mortgage or car payments can be spread across the plan instead of due all at once.

It often fits people with steady income who want to keep a house or car, or who earn too much for Chapter 7. When the plan is finished, many remaining unsecured debts can be discharged.

Often a good fit if

You are behind on your mortgage and want to keep the house
You want to keep a car after falling behind on the loan
Your income is above the median, so Chapter 7 may not be open to you
You own property the exemptions do not fully protect
You owe recent taxes and need time to pay them

Things to weigh first

The plan needs steady income to make the monthly payment
There are debt limits for Chapter 13, which we check at the consultation
Three to five years is a long commitment. If you would rather let property go and finish sooner, Chapter 7 may suit you better

Step by step

How it usually goes with us

01

Free consultation

We look at your budget, what you are behind on and what you want to keep.
02

We build the plan

A monthly payment that fits your real budget, with the missed payments spread out.
03

File and pause collection

The automatic stay starts on filing, which usually pauses a foreclosure sale or repossession.
04

Meeting and confirmation

A short meeting with the trustee, then a hearing where the court approves the plan.
05

Plan payments

We stay with you for the whole plan. If your income changes, we can ask the court to adjust it.

A plan example, in plain numbers

Example Chapter 13 plan payment, made-up numbers
Part of the plan	How it is worked out	Per month
Missed mortgage payments$9,000 spread over 60 months	$9,000 spread over 60 months	$150
Missed car payments$2,400 spread over 60 months	$2,400 spread over 60 months	$40
Unsecured debts (cards, medical)What your budget allows after living costs	What your budget allows after living costs	$85
Trustee's feeSet by the trustee, a percentage of payments	Set by the trustee, a percentage of payments	about $25
Example plan payment		Example plan payment	about $300

Example only, with made-up numbers. Your regular mortgage payment continues on top of the plan. A real plan depends on your income, expenses and debts, and the court has to approve it.

Chapter 13

Questions people ask us

What if I miss a plan payment?

Call us right away. One missed payment does not end a plan, and the court can approve changes if your income drops. What hurts a case is silence, so we would rather hear early.

Can Chapter 13 stop a foreclosure?

Filing usually pauses a foreclosure sale through the automatic stay. To keep the house, the plan has to catch up the missed payments and you need to keep up the regular payment going forward. We check whether that is realistic before you file.

Do I pay back all of my credit cards?

Usually not. Unsecured creditors receive what your budget allows after living costs and the required payments. Whatever is left unpaid at the end of a completed plan is often discharged.

Ready to talk it through? It's free, and there's no judgement here.

A 45-minute consultation in our office, by phone or by video. You'll leave knowing your options, the likely cost and the next step, even if that step is not bankruptcy.

Book a free consultation Call (414) 555-0162