Chapter 13 bankruptcy is designed to help debtors reorganize on their debts through a three-to-five-year repayment plan. If you’re able to pay back at least a portion of the debts that you owe, Chapter 13 bankruptcy may be an option. A Chapter 13 bankruptcy is also a good alternative for those who make too much to qualify for a Chapter 7 bankruptcy.
Chapter 13 has certain advantages over Chapter 7, especially for homeowners who have fallen behind on their mortgage and are facing foreclosure proceedings. Filing a Chapter 13 will often help debtors save their home by stopping foreclosure proceedings and allowing debtors to repay their mortgage arrears through a Chapter 13 plan. Similarly, if debtors have fallen behind on their car payments, Chapter 13 will enable them to catch up and keep their car.
Call (747) 477-4408 or send us a message to schedule a free consultation with our Van Nuys Chapter 13 bankruptcy lawyers.
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In certain situations, you may be able to get your second mortgage/home equity line stripped in a Chapter 13. Assets are not liquidated in a Chapter 13. You’ll get to keep all of your property, including nonexempt assets. However, you may have to pay a portion of your unsecured debt back. The amount you pay is highly individualized based on your budget and disposable income. With an experienced bankruptcy attorney by your side, you can often get a low-percentage Chapter 13 payment plan confirmed. Chapter 13 is also a good option if you owe income or property taxes or alimony and child support, as it will enable you to repay these non-dischargeable debts over several years while still allowing you to discharge your dischargeable unsecured debts.
