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California Bankruptcy Attorneys - Chapter 13 Bankruptcy

For people who need bankruptcy protection, but who want to be able to preserve their assets and financial interests, Chapter 13 bankruptcy is a wise move. Chapter 13 bankruptcy restructures debt and allows the individual with a steady income to repay a portion of his or her debts while still taking advantage of numerous bankruptcy protections. In particular, Chapter 13 bankruptcy can be beneficial if you are facing debts that cannot be discharged via Chapter 7, such as student loans, and tax obligations. With the newest bankruptcy laws in place, many individuals who do not qualify for Chapter 7 liquidation may still qualify for Chapter 13 bankruptcy.

Chapter 13 bankruptcy works by restructuring your debt. You must come up with a budget and a repayment plan that will allow you to repay at least as much of your debts as creditors could expect to receive under a Chapter 7 plan. You must also commit to using the entirety of your disposable income to make these payments for the duration of the payment plan, which is typically anywhere from 3-5 years. Successfully completing a Chapter 13 bankruptcy repayment plan requires discipline, however, there are numerous benefits to the plan. Among these are:

1.       Retaining your possessions – under a California Chapter 13 bankruptcy you don’t have to worry about exemptions or non-exempt property. As long as you make your payments, your property will not be sold.

2.       Loan Modifications – the bankruptcy judge in a California Chapter 13 bankruptcy may adjust certain loans. This is beneficial if you are “upside down” on a secured loan – for example, your automobile loan principal may be reduced to reflect the actual value of the car, rather than what you actually owe.

There are several other benefits to Chapter 13 bankruptcy as well, such as an extension of the automatic stay to cover any cosigners on your loans or other financial obligations. For individuals who have a steady income, and who are prepared to make the necessary adjustments, a Chapter 13 loan can provide the means to repay some creditors, while still benefiting from a significant reduction in debt. If you are considering filing for Chapter 13 bankruptcy in California, talk to us. Our firm has years of experience handling bankruptcy cases throughout California – we can help you understand how filing for Chapter 13 bankruptcy in California can benefit you in both the short term and the long term when it comes to staying afloat financially and obtaining your financial goals.

We offer a free, no-risk initial case evaluation that is designed to answer questions and eliminate the confusion that often surrounds Chapter 13 bankruptcy filings. Contact us today or fill out our free online California Bankruptcy your case evaluation as soon as possible. Don’t delay – the protections offered by Chapter 13 bankruptcy are numerous, and the sooner you have the right information, the sooner you will be able to move forward on the path to financial security and peace of mind.