California - Chapter 13 Bankruptcy Information

Bankruptcy San Diego, Chapter 13, San Diego Chapter 13 Debt Relief

Many times you will hear Chapter 13 as a repayment  plan or a wage earner plan.  Under a Chapter 13 bankruptcy, the debtor  proposes a 3-5 year repayment plan to the creditors offering to pay off all or part of the debts from the debtor's future income. After reviewing all the facts, I can direct you on what is right for you.

Chapter 13 can be used to  prevent a house foreclosure, make up missed  or late trust or  mortgage payments,  stop or lower interest from accruing on your tax debt, and pay back taxes, (local, California state taxes, or the IRS federal).  You can also keep non-exempt property which you would have been required to liquidate under a Chapter 7 but don't have to under Chapter 13.  If you finish the plan and make the payments under the terms of your repayment agreement, all your remaining dischargeable debt will be released at the end of the plan (typically three to five years). How much will you have to pay under  Chapter 13?  The amount to be repaid is determined by different legal  factors including the debtor's disposable income. Also, the minimum total amount paid to creditors under the Chapter 13 plan must be at least the amount that the debtor would have paid the creditors.  Under a Chapter 13 bankruptcy protection you must have a "regular source of income" and this regular source of income must include some disposable income to make payments under the Chapter 13 payment plan.

Chapter 13 bankruptcy is generally used mainly by debtors who have delinquent debts and  have secured assets and want to keep them. This can be a home, car, equipment where the debtor has  more equity in the secured assets than is allowed under bankruptcy exemptions.  Chapter 13 bankruptcy is a chance to reorganization your debt whereas a Chapter 7 bankruptcy is a liquidation of all but exempt assets.

Under a Chapter 13 bankruptcy you are allowed to make up overdue payments over time and to reinstate the original agreement. You can keep valuable nonexempt property under a Chapter 13 plan.  In many cases, Chapter 13 can be a better option than a seven. However, if you want to eliminate your heavy debt burden and don't want to make payments for 3-5 years, then Chapter 7 is the way to go if you meet the means test.   

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Under the federal law before starting,  you are required to sign release forms before the process can start on your personal bankruptcy case. However, I do not charge for a consultation.  I do not require a retainer (attorney fees) until I have reviewed your entire situation to see if you qualify for Chapter 7.  If you don't qualify for Chapter 7,  it does not mean that bankruptcy can not work for you. Chapter 13 can also give you great results.  The information you provide which should include all of your assets, debts, expenditures, and exemptions will be examined in order  to determine the best approach to put you in the best legal and financial position after bankruptcy.  Our goals will be to get you out of debt and get a fresh financial start.  

Contact David A. Casey today to discuss Chapter 7 bankruptcy. We promptly return all inquiries (phone or e-mail), I am here to help you now. Let my office help you to get the fresh start today.

We are a debt relief agency. We help people file for relief under the Bankruptcy Code.