Chapter 13 Bankruptcy?
Chapter 13 Bankruptcy is a Consolidation Plan that eliminates virtually all your debt. It is primarily for Debtors that do not qualify for Chapter 7 or Debtors that need to save a House from Foreclosure or Car from Repossession. All assets are 100% protected in Chapter 13. Nothing is taken or sold. Chapter 13 is also effective at providing protection from Student Loans for up to 5 years, restructuring car loans, and removing mortgages and judgments from real estate. Married couples have the option to file individually or jointly with their spouse. Notwithstanding, Chapter 7 should also be explored since it is usually cheaper and quicker.
Chapter 13 works by making low monthly payments for 3 to 5 years, derived by ubtracting relevant expenses from the average of your previous 6 months of income. It is not uncommon for Debtors to have chapter 13 payment plans lower than their previous car payments. Homework consists of worksheets (we will provide you a link to our online worksheet portal), credit counseling, and document gathering (paystubs, bank statements, car registration, tax returns, etc). You must also attend the Meeting of Creditors (virtual and no need to drive to Downtown San Diego) about 30 days after your case is filed.
Chapter 13 Provides:
- A Fresh Start
- Protection to co-signers
- An improved credit score in most cases
- Ability to Eliminate Junior Mortgages
- Ability to restructure car loans and avoid repossession
- Ability to remove judgment liens from residences
- Ability to recover bank levies and ganished wages
- Consolidation of debt into one low monthly payment
- The ability to recover bank levies and ganished wages
- Absolute protection and controll for all Assets, all assets are untouchable
- An opportunity to obtain credit again (credit cards, vehicle loans, home ownership, business loans, etc.)
- An immediate stop to all creditor harassment, repossessions, foreclosures, evictions, wage garnishments, bank levies, etc.
- A permanent discharge to almost all debt (credit cards, medical bills, personal loans, repossessions, payday loans, government overpayments, certain taxes, etc)
- A permanent discharge to debts that can not be discharged in chapter 7(certain taxes, divorce property settlements, debts for willful and maliscios injury to property, etc).
Chapter 13 Stops:
- Bank levies
- Tax collection
- Wage garnishments
- Utility disconnections
- Student Loan Payments
- Creditor/debt collector harassment
- Public benefit overpayment collections
Which Chapter, 13 or 7?
Deciding which Bankruptcy Chapter to file depends on the facts of each case. While most people opt for Chapter 7, it could risk the loss of assets and/or dismissal if income is too high. On the other hand, filing Chapter 13 might seem to provide greater relief at first blush, but could end up being much more expensive in the long run and overwhelm you with Bankruptcy Court oversight for the next 3 to 5 years. Since Doan Law has filed nearly 50,000 Bankruptcy Cases, we will easily determine which Bankruptcy Chapter is best for you.
Call or Text (760) 450-3333 or Email to schedule your FREE PHONE CONSULTATION with a Bankruptcy Attorney. Hablamos Espanol.
At Doan Law our Bankruptcy Attorneys will answer all your Chapter 7 Bankruptcy and Chapter 13 Bankruptcy questions. Doan Law Firm is California’s Largest Family of Attorneys, Specializing in Bankruptcy and Non-Bankruptcy Alternatives.