Chapter 13 Bankruptcy-Get Debt Relief and Keep Assets in California

If you’ve always had a regular income, you might have thought you’d never need to file bankruptcy. Unless, of course, your debt has spiraled out of control. While regular income is wonderful to have, if it’s still not enough to pay all your debts, instead of getting ahead each month you may be falling further and further behind. If this sounds like you, then Chapter 13 might be a good option for you.

Don’t let fear or embarrassment hold you back from learning about your options:

Many people have such fears about bankruptcy that they never consider it as an option. This is especially true for people who took out the debt they thought they could afford at the time but have since seen their salaries, business income, or assets fall as a result of the struggling economy.

Bankruptcy doesn’t mean you’re a bad person, and it doesn’t mean you have to lose everything. Chapter 13 bankruptcy was designed as a sort of debt-repayment option. If the court approves your plan, you repay certain debt during a certain period of time (three to five years) through affordable monthly payments. In most cases, this means you can save your home and car, catch up on any late payments, protect certain co-signers and spouses, and get the relief you need from other debt (such as debt related to medical bills or credit cards) that you simply can’t afford.

What is involved in a Chapter 13 bankruptcy?

There are eligibility requirements for filing Chapter 13, namely that you have sufficient regular income to afford the repayment plan. Also, the certain debt must be repaid in full in a Chapter 13 plan, including certain taxes, child support, and a mortgage for a home you want to keep. Other debt, such as for credit cards and medical bills, gets repaid only to the extent you can afford it (either through having enough disposable income or nonexempt assets). A second mortgage or a home equity line of credit (HELOC) might even be eliminated or reduced in Chapter 13 through “lien stripping.”

If you’re struggling with your debt, please feel free to call my office to discuss whether Chapter 13 would be an option for you. Call Denton Law Group today at (619) 458-3739 to schedule a free consultation.

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