Chapter 13 Bankruptcy Brings Relief Employed People
Everyone has the right to file for bankruptcy protection if they cannot afford to pay their debts, but not everyone will get a substantial amount of debt relief out of it, and not everyone is eligible to file under every section of the bankruptcy code. Chapter 13 bankruptcy can be a relatively painless way to get major debt relief if you are a good candidate for this type of bankruptcy filing. Getting through a Chapter 13 bankruptcy case successfully requires a lot of planning, and it only works if you have a steady income.
Chapter 13 bankruptcy requires you to make payments on a debt repayment plan for several years, and at the end of this period, the bankruptcy court will discharge the balance of your eligible debts. If you do not keep up with your court-ordered debt repayment plan, the bankruptcy court could convert your case to Chapter 7, which gives it the right to liquidate some of your assets to settle your debts; chapter 7 cases that changed to Chapter 7 from chapter 13 are at higher risk of asset liquidation than those that started out as chapter 7, where the applicant planned carefully to avoid liquidation. An Oakland Chapter 13 bankruptcy lawyer can help you prepare for a successful Chapter 13 bankruptcy filing that brings you maximum debt relief.
How Does Your Income Affect a Chapter 13 Bankruptcy Filing?
Unless you have a steady income, chapter 13 bankruptcy is not for you. To successfully complete your bankruptcy case, you must continue making monthly payments in the amount the court determines you are able to pay. The payments last for three years if your income is lower and for five years if your income is higher. Anyone whose income is below $2.75 million per year is eligible to file for Chapter 13 bankruptcy.
How Can a Chapter 13 Bankruptcy Filing Save You From Home Mortgage Foreclosure?
You can still file for Chapter 13 bankruptcy if you have a home mortgage and are behind on payments. The bankruptcy court assumes that you will continue making your on-time payments on your mortgage throughout your bankruptcy case, but it includes the overdue amount in the amount to be paid during the repayment plan. Therefore, the desire to avoid mortgage foreclosure is a common motivation among Chapter 13 bankruptcy applicants.
Can Chapter 13 Bankruptcy Help You if You Have Fallen Behind on Car Loan Payments?
Chapter 13 bankruptcy does not give you a reset on your car loan the way it does on your home mortgage. If you have fallen behind on car payments, you can include the whole outstanding balance in your Chapter 13 repayment plan; this could make the maturity date of your car loan sooner or later than it originally was. Also, it is based on the loan amount and not the resale value of your car.
Contact the Law Office of Melanie Tavare About Chapter 13 Bankruptcy Protection
A debt relief lawyer can help you develop a long-term strategy to ensure success with your Chapter 13 bankruptcy filing. Contact the Law Office of Melanie Tavare in Oakland, California, or call (510)255-4646 for a free case evaluation.
Chapter 13 Bankruptcy Brings Relief Employed People
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