Chapter 13 Bankruptcy

Chapter 13: Debt Reorganization Bankruptcy

Often called the wage earner's plan, Chapter 13 bankruptcy is an option for people who have a regular source of income. If you have too many assets or too high an income to file Chapter 7 bankruptcy, you may still be able to reduce your debt to a manageable level through Chapter 13 bankruptcy.

At Louder Law Group in Sacramento, California, our bankruptcy attorneys can help you determine whether filing Chapter 13 bankruptcy makes sense for you. Please contact us today to arrange a free consultation and case evaluation.

An Affordable Repayment Plan

Unlike Chapter 7 bankruptcy, which eliminates your debts, Chapter 13 bankruptcy reorganizes your debt into one monthly debt settlement payment. Chapter 13 bankruptcy establishes an affordable repayment plan that allows you to repay some or all of your debt over the next three to five years. If you are able to repay your debt in full before three years are up, the plan ends.

You will no longer have to deal with your creditors directly. You will pay the bankruptcy trustee, who will distribute payments to individual creditors. Like all forms of bankruptcy, Chapter 13 will stop creditor harassment, and foreclosure and repossession actions.

Based on Your Ability to Pay

The amount of your monthly payment is affordable because it is based on your available income and the type and amount of your debts. For example, if you have court-ordered child support or alimony payments that must be paid in full, they are subtracted from the income available for debt payment. Reasonable living expenses are also given priority over debt repayment.

Halt Foreclosures, Keep Your Home

One of the advantages of filing Chapter 13 bankruptcy is that it allows you to halt foreclosure actions and keep your primary residence. Another advantage is that it protects those who may have co-signed a loan with you. Only you will be held responsible for repayment.

Filing Chapter 13 bankruptcy can be the first step toward a new beginning and a brighter financial future. To learn more, please visit our consumer bankruptcy overview page and contact a lawyer at the Louder Law Group today.