Foreclosure

• One of the primary rights enjoyed by a person filing for Chapter 13 bankruptcy is the ability to stop the foreclosure process on a residence. This option is not often available with a Chapter 7 bankruptcy. Upon filing, Chapter 13 law provides that any foreclosure action must stop immediately. Debtors are required to continue making payments while the bankruptcy works its way through the court system, but the ultimate goal is to be able to keep a house and spread the delinquency payments out over the course of the bankruptcy payment plan.
  
  

Creditors

• As many Americans have learned the hard way, creditors are not likely simply to fade away and not bother you again. Most will be quite persistent in their efforts to persuade you to pay your debt, resorting to phone calls, letters, even going so far as to contact family, friends and employers. Once you file for Chapter 13 bankruptcy, creditors listed in the action are no longer allowed to attempt to collect money from you. Any further collection efforts must be directed at the court. This right to protection from harassment is integral to Chapter 13.
  
  

Payment Plan

• Chapter 13 filers have the right to establish a reasonable repayment plan, based on their income, that could actually reduce the net outflow of money paid toward debt satisfaction. Chapter 13 is essentially a consolidation process that simplifies the filer's life. A single monthly payment is sent to a trustee appointed by the court, who then disburses the proceeds proportionately to debtors.
  
  

Legal Counsel

• Debtors interested in proceeding with a Chapter 13 bankruptcy are not required to retain the services of an attorney, but they are guaranteed to have one if they so desire. Most states have set down certain guidelines as to the minimum services an attorney must perform for his client. For example, the Northern District of California United States Bankruptcy Court lays out eleven points that a bankruptcy attorney must provide for his client.