Chapter 13 bankruptcy can be the best option for debt relief if you have high income or secured debts.  In chapter 13 bankruptcy you can repay delinquent mortgage or car payments while you keep your property.  Some second mortgages can be eliminated in chapter 13 bankruptcy and old car loans can be reduced to the fair market value of the car.  In short, chapter 13 bankruptcy can be the best option for certain clients.  To learn more about your chapter 13 bankruptcy options call our attorney at (707) 583-9688 for a free consultation.

The Basics

Many people file chapter 13 bankruptcy because they make too much money to file chapter 7 bankruptcy.  However, some people choose to file chapter 13 bankruptcy over chapter 7 bankruptcy.  In chapter 13 bankruptcy people can save their home from foreclosure or car from repossession.  Furthermore, property that would otherwise be sold in chapter 7 bankruptcy can be retained in chapter 13 bankruptcy.  Accordingly, chapter 13 bankruptcy can be the right option for debt relief if you have delinquent secured debts or considerable assets.

Foreclosure & Repossession

Chapter 13 bankruptcy is the right option for saving property from foreclosure or repossession.  By filing chapter 13 bankruptcy the automatic stay will stop the impending foreclosure of a home or repossession of a car.  However, the automatic stay is only temporary in practice unless you can bring your loan current through bankruptcy.  Fortunately, chapter 13 bankruptcy allows you to repay delinquent payments over 3 to 5 years.  Upon completion of this 3 to 5 year repayment plan you will be current on your loan, thereby protecting the collateral (house or car) from foreclosure or repossession.

Saving Your Property

In chapter 7 bankruptcy non-exempt property is sold and the proceeds given to creditors.  In contrast, non-exempt property can be retained in chapter 13 bankruptcy.  The one hitch is that general unsecured creditors must get the proceeds from non-exempt property they would have received in chapter 7 bankruptcy.  In practice, this means that you can keep non-exempt property in chapter 13 bankruptcy as long as you pay general unsecured creditors the fair market value of your non-exempt property through the 3 to 5 year repayment plan.

Free Consultation

To determine whether you should file chapter 13 bankruptcy you will need advice from an attorney.  The counsel of friends, family members and the internet is often incorrect.  More to the point, you will need to retain an attorney at some point to file chapter 13 bankruptcy, so take the prudent step of calling our attorney at (707) 583-9688 for a free consultation.