Our Chapter 13 Attorneys in Voorhees, NJ, Say Chapter 13 Can Stop Foreclosure and Put You Back in Control
If you've been opening your mail with a knot in your stomach, watching mortgage notices pile up, and wondering how much longer you can hold on, you're not alone. Many Camden County residents find themselves in exactly that position. The Camden County chapter 13 bankruptcy lawyers at The Law Offices of Howard N. Sobel, P.A., have spent more than 40 years helping people in this community find a real path forward, not just a temporary fix, through bankruptcy proceedings.
Chapter 13 is often called the "reorganization" bankruptcy, and that label matters. Unlike Chapter 7, which may involve liquidation of non-exempt assets in some cases, Chapter 13 allows eligible debtors to reorganize their debts through a structured, court-approved repayment plan that typically lasts three to five years. If you have a steady income and something worth protecting, such as a home with equity or a vehicle you need to get to work, Chapter 13 is frequently the better option.
Chapter 7 may work well for someone with little income and few assets, but it generally does not provide a mechanism to catch up on missed mortgage payments over time. Chapter 13 allows eligible homeowners to repay mortgage arrears through a court-approved plan while benefiting from bankruptcy protections. If you're unsure which path fits your situation, an initial consultation with our chapter 13 attorneys in Voorhees, NJ, will put you in a position to understand your options.
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Who Chapter 13 Is Designed to Help, According to Our Camden County Chapter 13 Bankruptcy Lawyers
Chapter 13 is available to individuals with regular income who fall within the debt limits set by federal bankruptcy law. It is not available to businesses directly, though business owners can file as individuals. The debt eligibility thresholds are established by federal law and adjusted periodically. Many individuals considering Chapter 13 qualify, but a consultation can determine whether the chapter is available based on your specific financial circumstances.
The situations where Chapter 13 tends to make the most sense include:
- Homeowners behind on mortgage payments: Chapter 13 allows you to stop foreclosure and cure arrears gradually over the life of the plan while continuing regular payments going forward.
- Wage earners who don't qualify for Chapter 7: If your income exceeds the means test threshold under federal law, Chapter 7 may not be available, but Chapter 13 may remain an option depending on your circumstances.
- People with non-exempt assets to protect: A second vehicle, investment property, or significant home equity can be preserved under Chapter 13 rather than surrendered in a Chapter 7 liquidation.
- Individuals with debts that Chapter 7 cannot discharge: Certain tax debts and domestic support arrears can be addressed through a Chapter 13 plan in ways Chapter 7 does not allow.
- Prior Chapter 7 filers: If you previously filed Chapter 7, Chapter 13 may still be available, although prior bankruptcy filings can affect eligibility for a discharge and other aspects of the case.
Eligibility for Chapter 13 is broader than many people realize, which is why a consultation can be valuable even if you think bankruptcy is off the table. The only way to know for certain is to go through your actual numbers with someone who understands the local rules and the Camden vicinage's trustee practices. The Law Offices of Howard N. Sobel, P.A., are here to help.
How the Chapter 13 Repayment Plan Works in Practice
The heart of a Chapter 13 case is the repayment plan. You propose a schedule based on your "disposable income," which is what remains after your allowed monthly living expenses are subtracted from your gross income. That plan is submitted to the bankruptcy court, where a judge reviews it, and creditors have the right to object before final approval.
Once confirmed, the plan governs your financial life for three to five years. Your monthly payment goes to the Chapter 13 Standing Trustee for the District of New Jersey, Camden vicinage, who distributes the funds to your creditors according to the plan's terms.
A typical Chapter 13 plan addresses several categories of debt simultaneously:
- Mortgage arrears: Mortgage arrears are caught up gradually over the plan period while you continue making your regular monthly mortgage payment outside the plan.
- Car loans: Vehicle loans are paid through the plan, sometimes at a reduced interest rate, depending on when the loan was taken out and the vehicle's current value.
- Priority debts: Back taxes and child support arrears must be paid in full through the plan before unsecured creditors receive anything.
- Unsecured debts: Credit cards and medical bills are paid only to the extent your disposable income allows; the remaining balance is discharged when you complete the plan.
One point that surprises many people: your monthly payment is determined by your actual budget, not a fixed formula. This is fundamentally different from a debt consolidation loan, where the lender sets the terms. In Chapter 13, the plan reflects what you can genuinely afford. The only way to get a realistic estimate for your specific situation is to sit down with an attorney and work through the numbers.
The Automatic Stay: Immediate Protection the Day You File
One of the most powerful features of any bankruptcy filing is the automatic stay, and it takes effect the instant your Chapter 13 petition is filed with the U.S. Bankruptcy Court. Under federal law, virtually all collection activity against you must stop immediately unless an exception applies.
The scope of that protection is broader than most people expect:
- Foreclosure proceedings: Stopped immediately, giving you time to propose a plan to cure your mortgage arrears
- Wage garnishment: Suspended as of the filing date, protecting your paycheck going forward
- Creditor calls and collection letters: Must cease once the stay is in place
- Vehicle repossession: Halted, and in some cases, a recently repossessed car can be recovered through the bankruptcy process
- Utility shutoffs: Temporarily prohibited under federal bankruptcy law
- Pending lawsuits and judgments: Frozen while the stay remains active
The automatic stay is not permanent. It generally remains in effect during the bankruptcy case unless the court modifies or lifts it, or the case is dismissed or otherwise concluded. If your case is dismissed or your payments lapse, the stay can lift, and collection activity can resume.
There is also an important nuance for repeat filers. If you have had a prior bankruptcy case dismissed within the past year, federal rules may limit the automatic stay to 30 days or eliminate it entirely in a new filing. An attorney can review your filing history and advise you on this before you file, so there are no surprises.
Debts Chapter 13 Can and Cannot Discharge
A "discharge" is the legal elimination of a remaining debt balance by court order. In Chapter 13, the discharge comes at the end of your plan, after you've made all required payments. Understanding which debts qualify matters a great deal when you're deciding whether Chapter 13 is the right strategy for your situation.
Debts that are typically discharged after completing a Chapter 13 plan include:
- Credit card balances and personal loans
- Medical and hospital bills
- Certain older income tax debts that meet specific age and filing criteria
- Deficiency balances on repossessed vehicles in some circumstances
Debts that survive Chapter 13 and cannot be discharged include:
- Domestic support obligations, including child support and alimony
- Most student loans, unless you separately pursue an "undue hardship" proceeding
- Recent income taxes and certain other tax obligations
- Debts arising from fraud, intentional misconduct, or willful injury
- Long-term obligations like a home mortgage, where the lien survives even after arrears are cured through the plan
In certain situations, the discharge available at the end of a Chapter 13 plan is actually broader than what Chapter 7 allows. That's one reason some filers choose Chapter 13 even when they could technically qualify for Chapter 7. Our Camden County Chapter 13 bankruptcy lawyers can walk you through exactly which of your debts would and would not be dischargeable before you make any decisions.
The Chapter 13 Filing Process in Camden County
Knowing what to expect at each stage reduces anxiety and helps you stay on track. Here is how a Chapter 13 case typically unfolds from start to finish:
- Initial consultation: Review your income, debts, assets, and goals to confirm Chapter 13 is the right fit and to begin estimating your plan payment.
- Credit counseling: Federal law requires you to complete an approved credit counseling course within 180 days before your petition is filed. This is a straightforward online or phone session.
- Petition preparation: Your attorney prepares the Chapter 13 petition, supporting schedules, and proposed repayment plan. Accuracy at this stage is critical; errors can delay confirmation or result in dismissal.
- Filing with the U.S. Bankruptcy Court: Chapter 13 cases in Camden County are filed in the Camden Vicinage of the District of New Jersey. The automatic stay takes effect the moment the petition is filed.
- Meeting of creditors (341 meeting): A brief, informal hearing before the Chapter 13 Trustee where you answer questions under oath about your financial situation. Creditors may attend, but rarely do in consumer cases.
- Plan confirmation hearing: The bankruptcy judge reviews your proposed repayment plan and, if it meets all legal requirements and any objections are resolved, confirms it as binding.
- Plan payments: You make monthly payments to the Trustee for three to five years, and the Trustee distributes those funds to creditors according to the confirmed plan.
- Discharge: Once you complete all required payments and satisfy any remaining obligations, the court issues a discharge order eliminating eligible remaining balances.
The Camden vicinage has its own local rules and trustee practices that can affect how plans are structured and what documentation is required. Working with attorneys who regularly practice in this court means fewer surprises and a smoother path to confirmation.
Why Camden County Residents Choose Our Chapter 13 Attorneys in Voorhees, NJ, at The Law Offices of Howard N. Sobel, P.A.
There is no shortage of bankruptcy filers in South Jersey, and unfortunately, there is no shortage of high-volume firms that treat those filers as nusbers on a spreadsheet. The Law Offices of Howard N. Sobel, P.A., has operated differently for more than four decades. Every client gets a real review of their financial picture, not a one-size-fits-all recommendation.
That depth of experience in Camden County and across South Jersey matters in Chapter 13 cases specifically. Local knowledge of the Camden Vicinage's trustee practices, confirmation standards, and procedural expectations shapes how a plan is drafted and presented. That's not something you get from a firm that files cases in bulk across multiple states.
The firm's peer recognition reflects a sustained standard of practice. Howard N. Sobel has been named to the New Jersey Super Lawyers list in General Litigation every year since 2010, a distinction limited to no more than five percent of attorneys in the state. He has also received multiple Top Attorney recognitions from SJ Magazine, including in the area of Debt Collection, and received the "Awesome Attorney" designation from South Jersey Magazine.
In 2024, the firm secured a reversal before the Superior Court of New Jersey, Appellate Division, in Parke Bank v. Voorhees Diner Corporation, et al. The result reflects the firm's willingness to pursue complex matters through the appellate process when a client's interests require it. This willingness to fight for clients at every level of the court system reflects the same commitment that guides every bankruptcy matter the firm handles.
If you're ready to understand your options, our chapter 13 attorneys in Voorhees, NJ, are ready to help.
Contact the Camden County Chapter 13 Bankruptcy Lawyers at The Law Offices of Howard N. Sobel, P.A.
Financial pressure doesn't ease on its own, and in Chapter 13 cases, timing matters. If a foreclosure sale date has been scheduled or a wage garnishment is already in effect, every day without the protection of the automatic stay is a day those actions can continue. Taking the first step now can stop that clock.
Your initial consultation with our firm includes a review of your income, debts, and assets to determine whether Chapter 13 is the right fit for your situation. There is no obligation and no cost. If you're looking for chapter 13 attorneys in Voorhees, NJ, or anywhere across Camden County and South Jersey, our team is ready to help you understand your options clearly and honestly.
Contact our office online or call us at 856-746-4150 to set up an initial consultation with our Camden County Chapter 13 bankruptcy lawyers.