If you're behind on mortgage or car payments, you may be feeling overwhelmed by threats of foreclosure, repossession, or wage garnishment. The good news? Chapter 13 bankruptcy offers a legal path to stop creditor actions and protect the assets that matter most to you.

At Carl W. Hopkins, PA, we help clients throughout Van Buren and the surrounding Arkansas region file for Chapter 13 and start the journey toward financial stability.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy—also called a wage earner’s plan—allows you to restructure your debt into a manageable repayment plan that typically spans three to five years. During this time, you'll make monthly payments based on your income while keeping your home, car, and other assets.

This type of bankruptcy is especially helpful if:

• You're behind on mortgage payments and want to stop foreclosure.
• Your car is at risk of repossession.
• You have steady income but need time to catch up on debts.
• You want to avoid liquidation of your property.

In many cases, Chapter 13 also allows for reduced payments on vehicle loans, or the ability to pay only a percentage of your unsecured debt (like credit card balances), depending on your specific circumstances.

What Happens During a Chapter 13 Proceeding?

The process begins with determining your eligibility through a means test, which reviews your income, expenses, and total debt. If you qualify, filing for Chapter 13 immediately halts any pending:

• Foreclosures
• Repossessions
• Wage garnishments
• Lawsuits from creditors

We’ll work closely with you to draft a proposed repayment plan, which must be approved by the bankruptcy court. The court will assess:

• Whether your plan was submitted in good faith
• If unsecured creditors would receive at least what they would under Chapter 7
• Whether your plan dedicates all available disposable income toward repayment

Once the plan is confirmed, you'll begin monthly payments to a court-appointed trustee who distributes funds to your creditors.

Do I Qualify for Chapter 13 Bankruptcy?

To be eligible, you must:

• Have regular income (from a job, Social Security, disability benefits, rental income, etc.)
• Have debts within the court's allowable limits
• Be an individual, sole proprietor, or self-employed (corporations cannot file under Chapter 13)

Chapter 13 might also be an option if your driver’s license was suspended due to unpaid tickets. In some cases, the bankruptcy process can support reinstatement.

Why Choose Carl W. Hopkins, PA?

With years of experience helping Arkansas residents navigate bankruptcy, our legal team understands the ins and outs of Chapter 13 law. We’ll:

• Assess your eligibility and guide you through the process
• Draft and submit your repayment plan
• Represent you at hearings and deal with creditors on your behalf

Filing for Chapter 13 bankruptcy is not just about stopping debt—it’s about reclaiming control of your future. Let us help you protect your home, preserve your peace of mind, and move forward.