If you’re struggling with debt but want to keep your home, vehicle, or other important assets, Chapter 13 bankruptcy may be the solution. Unlike Chapter 7, which erases most debts quickly, Chapter 13 allows individuals to reorganize and repay their debts over time while keeping their property.

Chapter 13 is sometimes referred to as the “wage earner’s plan” because it’s designed for people with regular income who need a structured way to catch up on payments and avoid foreclosure, repossession, or garnishment.

How Chapter 13 Works in Oklahoma

When you file for Chapter 13 bankruptcy in Oklahoma, you propose a repayment plan—usually lasting 3 to 5 years—to pay back all or a portion of your debts. The plan is based on your income, expenses, and types of debt. You’ll make monthly payments to a court-appointed trustee, who then distributes funds to your creditors according to the court-approved plan.

Benefits of Chapter 13 Bankruptcy

Filing Chapter 13 can offer several advantages:

• Stops foreclosure and repossession and allows you to catch up on missed payments
• Consolidates debts into one manageable monthly payment
• Protects your property from being sold, as long as you stay current on your plan
• Stops creditor harassment and wage garnishments
• May allow you to reduce or eliminate unsecured debts (like credit cards) after plan completion

It also protects co-signers on certain debts and can help restructure vehicle loans or second mortgages in some cases.

Who Qualifies for Chapter 13?

To file for Chapter 13, you must:

• Have regular income (from employment, self-employment, Social Security, or another source)
• Have unsecured debts under $465,275 and secured debts under $1,395,875 (amounts adjusted periodically)
• Be up to date on tax filings
• Complete a credit counseling course before filing

If your income is too high for Chapter 7 or you’ve filed Chapter 7 in the last 8 years, Chapter 13 may be your best or only option.

What Happens After You File?

Once you file your Chapter 13 case:

1. An automatic stay goes into effect, stopping all collection efforts, lawsuits, and garnishments.
2. The court reviews your repayment plan at a confirmation hearing.
3. You begin making payments—typically within 30 days of filing.
4. You continue making monthly payments to the trustee for 3 to 5 years.
5. At the end of the plan, remaining eligible debts may be discharged.

As long as you follow the plan and meet your obligations, Chapter 13 can give you the fresh start you need—without losing everything you’ve worked for.

Tahlequah Bankruptcy Attorneys

We help people across the state use Chapter 13 to stop foreclosure, eliminate debt, and protect their assets. If you’re behind on payments but want to keep your home or car, we can help you build a plan that works. For a free consultation with a Tahlequah bankruptcy lawyer, call us at 539-867-2321 or follow this link to ask a free legal question.