Chapter 13 bankruptcy

Chapter 13 bankruptcy is beneficial to a debtor in situations where non-exempt assets need to be protected, such as where there is equity in a home (above the homestead exemption limit) or when a house is in foreclosure or a car is near repossession. 

Once the petition is filed, the Chapter 13 bankruptcy will promptly stop a foreclosure or a repossession and all the past due amounts may be put into the Chapter 13 plan and be paid to the court and disbursed to creditors over a 3 year or 5 year court approved payment plan period. Additionally, Chapter 13 is typically intended for petitioners who have household income above the state prescribed mean income and/or fail the Means Income test (which would have disqualified such petitioners for a Chapter 7).

In a Chapter 13 bankruptcy, a payment plan is approved by the court. The debtor will make monthly payments to a court appointed trustee.  The debtor will be required to pay back some or all of the debts over a 3-year or 5-year period.  The amount of the payment is based on the amount of the petitioner’s income and expenses. 

If you need foreclosure defense, or to file for bankruptcy in California, it is important to do so with the help of an experienced attorney who knows the process. For guidance each step of the way and help ensuring your rights stay protected, contact our law firm to schedule an initial consultation. (877) 306-6343 or please fill out the following form and we will contact you as soon as possible!