Are you being hounded by creditors? Are you working hard to catch up, but they just won't leave you alone? If you find yourself in this stressful situation, help may be available in the form of a Chapter 13 bankruptcy, which puts an immediate stop to collection efforts and allows you to establish a payment plan lasting between three and five years to pay off a portion of your debt to your creditors. If you fall into this category, contact the San Diego bankruptcy and business attorneys at Contreras Law Firm today.
For some Californians whose income disqualifies them from Chapter 7 under the means test, a Chapter 13 bankruptcy is the only possibility. There are also other reasons you might want to choose a Chapter 13 instead of a Chapter 7.
1.) You've fallen behind on your mortgage or car payment but you want to keep the property. Chapter 13 gives you time to catch up and come current by the end of the bankruptcy period. Foreclosure proceedings stop immediately when you file Chapter 13.
2.) You have other property that does not fall under California's Chapter 7 exemptions that you want to keep.
3.) Co-signers on any of your loans will not be subject to collection efforts.
4.) You have debt that cannot be discharged in a Chapter 7, such as unpaid taxes, domestic support arrears, student loan debt, or debt you incurred through fraud or by using your credit card to purchase luxury items immediately before filing bankruptcy.
5.) It's been less than eight years since a previous Chapter 7 bankruptcy was discharged.
HOW CHAPTER 13 WORKS
In realty, a Chapter 13 can be quite complex, but in a nutshell, this is how it works: In Chapter 13, you will create a bankruptcy plan which will propose the amount you will pay to creditors and the amount of time in which you will do it. A Chapter 13 is completed in three to five years. The amount that you propose to repay can range from 0 to 100 percent. Your payment calculation will reflect your disposable income, the value of your non-exempt assets, and the amount of priority debts, including domestic support, student loans, and taxes. Payments are made to a bankruptcy trustee who in turn makes the agreed-upon payments to creditors. Your first payment will be due 30 days after you file. At the end of the repayment schedule, all other debt is discharged.
You will need to work with an experienced San Diego bankruptcy attorney to determine if Chapter 13 is right for you and to determine the terms that will be available to you, given your total financial situation, your income, and your assets.
HIRING THE BEST ATTORNEY FOR YOUR BANKRUPTCY
If you live in San Diego County and are having trouble paying your creditors in spite of having an income, especially if you are at risk of losing your house in a foreclosure, you should waste no time in consulting an experienced California bankruptcy attorney to learn if you qualify for a Chapter 13 bankruptcy. You can find the help you need by contacting Contreras Law Firm.
Our personalized approach to bankruptcy practice is focused on your individual needs and your personal financial situation. We understand the stress that comes with being in debt. We know how nerve wracking it can be to be hounded by creditors without mercy when you are already trying to do your best to catch up. We understand what your home means to you and your family and how devastating it would be to lose it. We are passionate in our commitment to helping you and others like you who have fallen victim to a no-longer-robust economy. But there is help available. When you hire the Chapter 13 San Diego bankruptcy attorneys at Contreras Law Firm to assist you, we will show you how you can stop all collection activities, save your home, and create a plan that will put you on track to becoming debt free.
There is a light at the end of the tunnel. Call Contreras Law Firm today for a free bankruptcy consultation.Back to Top