Debt doesn’t always mean disaster—and it doesn’t mean you have to give up everything you’ve worked for. If you're behind on your mortgage, facing repossession, or struggling to manage bills that never stop coming, Chapter 13 bankruptcy may be the tool that helps you regain control without losing your car, your home, or your financial future.

At Sheehan & Ramsey in Ocean Springs, Mississippi, we help individuals and families restructure their debt through Chapter 13 plans tailored to real-life challenges—and real financial goals.

What Makes Chapter 13 Different?

Unlike Chapter 7, which wipes out certain debts, Chapter 13 bankruptcy is a court-approved repayment plan. It’s ideal for those who have a steady income but need time and legal protection to catch up on past-due payments or reorganize their obligations.

Chapter 13 offers:

• A way to stop foreclosure or repossession and keep your home or vehicle
• The ability to catch up on missed mortgage payments over time
• The power to lower or restructure debt, including cramming down vehicle loans
• Protection from creditor harassment through the Automatic Stay
• A 3- to 5-year plan that consolidates what you owe into manageable payments

If you're a sole proprietor or self-employed, Chapter 13 can also allow you to continue operating your business while regaining financial stability.

Emergency Filing Can Help Fast

When the stakes are high—such as a pending foreclosure or a car repossession—an emergency Chapter 13 filing can stop the action immediately. This quick action allows you to get a case number and invoke the Automatic Stay with limited paperwork, then follow up with full documents later. It’s a critical lifeline when time is running out.

Who Qualifies for Chapter 13?

To qualify, you’ll need:

• Stable income from employment, self-employment, Social Security, retirement, etc.
• Debt within current limits (under $2,750,000 total as of July 2023)
• Enough disposable income after necessary expenses to fund your repayment plan
• Completion of credit counseling from an approved provider

Our team helps you assess these qualifications through a free consultation so you can move forward with confidence.

Understanding the Repayment Plan

A Chapter 13 plan outlines how you’ll repay part—or all—of your debt over a 3- to 5-year period. Your debts are grouped into three main categories:

Priority Debts

Includes recent taxes, child support, and alimony. These must be paid in full.

Secured Debts

Covers mortgages, car loans, or other debts with collateral. Depending on your situation, you may be able to lower the amount owed (known as a cramdown), surrender collateral, or catch up on past-due payments.

Unsecured Debts

Includes credit cards, medical bills, and personal loans. These may be discharged depending on your disposable income and the value of your non-exempt assets.

Every plan is customized, and the court must approve it before it goes into effect. The team at Sheehan & Ramsey creates your plan with the goal of reducing what you owe while preserving what matters most.

Flexible Solutions When Life Changes

Chapter 13 isn’t a one-size-fits-all process—and it’s not locked in forever. If your income changes or unexpected expenses arise, your plan can be modified or even converted to Chapter 7 in some cases. We’ll help you evaluate every option and adjust your strategy as needed.

The Sheehan & Ramsey Difference

At Sheehan & Ramsey, we understand how overwhelming financial stress can feel. That’s why we approach every Chapter 13 case with personalized attention, fast action when needed, and a plan that reflects your reality—not just your debt.

We’ve helped clients stop foreclosure days before a sale, recover repossessed vehicles, and keep small businesses operating through turbulent times. We offer free consultations, transparent communication, and deep familiarity with Mississippi bankruptcy courts.