Chapter 13 Bankruptcy in Montana

Chapter 13 Bankruptcy in Montana: A Powerful Tool for Protecting Your Home and Other Assets, Stopping Foreclosure and Collections, and Regaining Financial Stability

If you’re behind on mortgage payments, facing repossession, dealing with tax debt, or struggling to keep up with monthly bills, filing Chapter 13 bankruptcy in Montana can provide a clear path toward financial control. At the Law Office of Jeffrey K. Greenwell, PLLC, I help individuals and families throughout Montana, including Whitefish, Kalispell, Columbia Falls, the Flathead Valley, and the rest of Montana, use Chapter 13 to restructure debt, protect assets, and move forward with confidence.

What Is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy in Montana is a court-approved repayment plan that allows you to reorganize debt over three to five years. Unlike Chapter 7, which eliminates most unsecured debt, Chapter 13 focuses on:

• Catching up on missed mortgage or car payments
• Stopping foreclosure or repossession
• Consolidating debts into one affordable monthly payment
• Protecting property that may not be fully exempt
• Addressing tax debts through structured repayment

For many Montana residents, we will file your Chapter 13 bankruptcy case in the United States Bankruptcy Court for the District of Montana to provide some stability and breathing room while keeping everything they’ve worked hard to build.

Benefits of Chapter 13 Bankruptcy in Montana

Chapter 13 bankruptcy in Montana offers powerful protections and long-term advantages:

Stop Foreclosure and Catch Up on Your Mortgage

Even if foreclosure has already started, Chapter 13 stops it immediately through the automatic stay and allows you to pay past-due amounts over time.

Prevent Vehicle Repossession

You can bring car payments current — and in many cases reduce the loan balance through a cramdown.

Stop Lawsuits, Garnishments, and Collection Actions

Creditors must stop all collection activity as soon as the case is filed.

Consolidate All Debts Into One Monthly Payment

Your payment is based on what you can afford — not what creditors demand.

Protect Non-Exempt Property:

If you own assets, a Chapter 7 might risk losing them, but Chapter 13 can ensure that you keep them.

Pay Tax Debt Without Penalties or Interest:

IRS and Montana Department of Revenue debts can be repaid on favorable terms.

Flexible Debt Relief:

Many unsecured debts receive little or no payment, depending on your budget.

Chapter 13 is one of the most powerful financial tools available for Montana residents facing significant debt or major life disruptions.

Am I Eligible for Chapter 13 bankruptcy in Montana?

Income and Debt Requirements:

To qualify for Chapter 13, you must:

• Have regular income
• Be under the federal secured and unsecured debt limits (updated periodically)
• Be able to make a monthly plan payment

Even if you were told you “make too much” for Chapter 7, Chapter 13 may still be your best option.

Ability to Make a Plan Payment

I perform a full analysis of your:

• Income
• Expenses
• Mortgage and auto arrears
• Tax obligations
• Unsecured debt
• Non-exempt property

This ensures your plan is both affordable and court-approved.

Debts You Can Handle Through Chapter 13

Fully Manage Your Debts Through the Plan

• Mortgage arrears
• Car loan arrears
• IRS and Montana tax debt
• Domestic support arrears
• Personal loans
• Medical bills
• Credit cards
• Collections
• Payday loans
• Old repossession balances
• Lease deficiencies

Debts can be Reduced Through Cramdown

(loan balance lowered to actual value)

• Vehicles purchased over 910 days ago
• Certain recreational vehicles
• Some personal property loans

Debts Generally Not Eliminated in Chapter 13

• Child support
• Alimony
• Some newer tax debts
• Criminal fines
• Student loans

How the Chapter 13 Process Works

Consultation and Case Evaluation

I review your finances, assets, and goals to determine if Chapter 13 is the best strategy.

Preparing Your Repayment Plan

We create a customized plan that reflects your budget and protects your home, vehicles, and other important assets.

Filing and the Automatic Stay

Once filed, all collection actions—including foreclosure and repossession—must stop immediately.

341 Meeting of Creditors

A short telephonic or Zoom meeting with the bankruptcy trustee.

Plan Confirmation

The court reviews and approves your repayment plan, often within 90 days.

Monthly Payments

You make a single monthly payment to the trustee. During this time, your property remains protected.

Discharge

At the end of your plan, qualifying remaining debt is eliminated, giving you a fresh financial start.

Who Should Consider Chapter 13?

Chapter 13 may be the best solution if you’re dealing with:

• Mortgage delinquency
• Vehicle repossession threats
• High tax debt
• Loss of income or temporary hardship
• Significant unsecured debt
• Non-exempt property at risk
• A failed Chapter 7 Means Test
• A desire to consolidate and simplify payments

When structured properly, Chapter 13 restores stability and protects what matters most. Many people choose Chapter 13 bankruptcy in Montana when they need to stop foreclosure, protect property, and regain financial stability.

Chapter 13 vs. Chapter 7 — Which Is Right for You?

Chapter 7	Chapter 13
Eliminates unsecured debt	Reorganizes & repays debt
No payment plan	3–5 year repayment plan
Fast (about 90 days)	Longer process
Best for lower income	Best for higher income or asset protection
May risk some non-exempt property	Protects all property

If you’re uncertain which chapter fits your goals, I’ll evaluate your situation and recommend the best long-term approach.

Take the First Step Toward Financial Stability

If you’re overwhelmed by debt or facing foreclosure, repossession, or mounting bills, Chapter 13 may be the solution that protects your home, vehicles, and financial future.

I offer consultations by telephone or Zoom, making the process simple and private.

Contact us through the contact form below if you have questions. Otherwise, please feel free to call us to schedule a consultation today and start moving toward financial relief.