Chapter 13

Chapter 13 bankruptcy is a reorganization proceeding in which the debtor’s debts are restructured and some debts repaid. When someone files for bankruptcy under Chapter 13 of the Bankruptcy Code, their aim is to have the opportunity to repay some or all the debts in their name, in better terms, i.e. lower or no interest. Unlike Chapter 7 which involves liquidation of assets, this process involves restructuring debts which allows the debtor to use whatever income they may have in the future to pay off the creditors. Filing Chapter 13 Bankruptcy is thus applicable for a debtor who has a regular income, and thus can afford to request for such adjustments or reductions.

The United States Bankruptcy Code governs how much a creditor must be repaid and how long a debt must be paid back. While the attorney will safeguard your interests, the entire process is carried out under the supervision of the courts.

If you are not eligible for Chapter 7 bankruptcy under the means test or you are able to pay 10 percent of your debt, than you will file for Chapter 13 bankruptcy. By creating a payment plan you can afford, you will get the chance to pay off as much of your debt as possible over a three-to-five-year period, at which point your remaining debt will be discharged.

We help our Southern California clients stay in their homes. We can help you stop the foreclosure sale and schedule a hearing within 4 to 5 weeks. If the bankruptcy process is feasible and you can afford payments, you will get a second hearing in front of a judge three weeks later. If all parties agree to the proposed plan, you will be on your way.

Chapter 13 bankruptcy offers people a way to avoid foreclosure and protect assets they thought they might lose. If you are interested in Chapter 13, we will help you to come up with a plan that works for you.