Chapter 13 Bankruptcy: A Lifeline for Riverside Homeowners

At Reid & Hellyer, our expertise in handling Chapter 13 bankruptcy cases has provided a beacon of hope for many homeowners in Riverside, California. This comprehensive guide aims to explore how Chapter 13 bankruptcy can be a viable solution for those grappling with debt while striving to retain their homes.

Understanding Chapter 13 Bankruptcy

Chapter 13 bankruptcy, also known as a ‘wage earner’s plan,’ empowers individuals with a steady income to restructure and manage their debts. Unlike Chapter 7, which involves liquidating assets, Chapter 13 focuses on debt repayment over time.

Key Features:

  • Repayment Plan: Debtors propose a plan to repay debts in installments over three to five years.
  • Debt Restructuring: Allows for the reorganization of debts to make them more manageable.
  • Legal Protection: Offers protection against foreclosure, repossession, and other collection actions.

For more information, visit the U.S. Courts website.

Crafting a Repayment Plan

The heart of Chapter 13 is the repayment plan. It’s a document that outlines how you’ll pay back your debts. Crafting a realistic and feasible plan is crucial for the plan’s approval by the bankruptcy court.

Elements of a Good Repayment Plan:

  • Affordability: The plan must reflect your ability to pay.
  • Priority Debts: Certain debts, like tax obligations and child support, must be paid in full.
  • Secured Debts: These include mortgages and car loans, which can be restructured under the plan.

For guidance on creating a repayment plan, visit the Federal Trade Commission’s website.

Saving Your Home with Chapter 13

One of the most significant advantages of Chapter 13 is the ability to prevent home foreclosure. It allows homeowners to catch up on missed mortgage payments over the duration of the repayment plan.

How Chapter 13 Helps:

  • Halting Foreclosure: Filing for Chapter 13 triggers an automatic stay, stopping foreclosure proceedings.
  • Curing Delinquent Payments: You can spread out past-due mortgage payments over the length of your repayment plan.
  • Ongoing Mortgage Payments: You must continue making all current mortgage payments due after filing.

Learn more at the Consumer Financial Protection Bureau.

Eligibility Criteria for Chapter 13

Not everyone qualifies for Chapter 13 bankruptcy. Understanding the eligibility criteria is essential before considering this option.

Key Eligibility Requirements:

  • Debt Limits: Your unsecured and secured debts must be below certain thresholds.
  • Regular Income: You need a steady source of income to fund the repayment plan.
  • Credit Counseling: Completion of credit counseling from an approved agency is mandatory.

For more information on eligibility, visit the Federal Trade Commission’s guide.

The Chapter 13 Bankruptcy Process

Navigating Chapter 13 bankruptcy involves several steps, each crucial for a successful outcome.

Steps in the Process:

  • Initial Consultation: Discuss your financial situation with a bankruptcy attorney.
  • Credit Counseling: Complete the required credit counseling course.
  • Filing the Petition: File your bankruptcy petition along with your proposed repayment plan.
  • Automatic Stay: This immediately stops most creditors from pursuing collection actions.
  • 341 Meeting: Attend a meeting with your creditors.
  • Plan Confirmation: The court reviews and confirms your repayment plan.
  • Making Payments: Start making payments according to the plan.
  • Discharge: Upon completion of the plan, remaining eligible debts are discharged.

The U.S. Courts website provides a comprehensive guide to the bankruptcy filing process.

Life After Chapter 13 Bankruptcy

Completing a Chapter 13 bankruptcy can be transformative, offering a fresh financial start while retaining your home.

Post-Bankruptcy Considerations:

  • Credit Rebuilding: Your credit score will be impacted, but you can start rebuilding it immediately.
  • Financial Management: Adopting sound financial habits is key to preventing future financial distress.
  • Long-Term Planning: Consider financial planning to secure your future.

For resources on life after bankruptcy, visit’s financial literacy page.


For many Riverside residents, Chapter 13 bankruptcy represents a path to financial recovery while keeping their homes. At Reid & Hellyer, we are committed to providing personalized guidance through every step of the bankruptcy process. If you’re considering Chapter 13, contact us today for a consultation, and let us help you regain control of your financial destiny.


The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Reid & Hellyer, APC or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.