Bankruptcy is a buzzword that often conjures feelings of dread for local community members. The false assumption is that bankruptcy is simply a form of “giving up” or committing oneself to permanent financial problems.

This perception is particularly common among those who are used to a somewhat higher level of income. It is not uncommon for those who have a steady job with good income to find themselves wallowing in debt. But bankruptcy is not just for the unemployed or those facing sudden emergencies. Depending on market conditions, investment decisions, and other factors, virtually anyone can find themselves in a tough financial spot. In fact, different types of bankruptcy exist for those with certain income levels or property.

Are you thinking about filing for bankruptcy but worried about losing your house, car, or other possessions? If so, it is important to consider Chapter 13 Bankruptcy. Although less common than Chapter 7 Bankruptcy, Chapter 13 is often a better option for Hayward residents who have significant income and a larger number of assets.

Deciding which chapter of bankruptcy to file is an important decision, and there may be long- lasting financial consequences depending on which chapter you choose. An attorney who has experience with bankruptcies in the Hayward community can help advise you about which option is best for your individual situation.

Why File for Chapter 13 Bankruptcy?

In Chapter 13 Bankruptcy, a debtor submits a repayment plan to the bankruptcy court. This repayment plan outlines how much debt the debtor can repay over either three or five years. If the court approves the plan, the debtor then makes the agreed-upon payments for a specified period of time. After the payments are completed, any remaining unsecured debt is wiped away.

In addition to wiping away some debt, one of the chief benefits of Chapter 13 Bankruptcy is that it gives a debtor time to restructure their finances and catch up on arrearages. This can help a debtor stave off an imminent home foreclosure or car repossession. Unlike Chapter 7 Bankruptcy, in which all of a debtor’s nonexempt assets may be sold, Chapter 13 Bankruptcy allows a debtor to keep their assets. This can make Chapter 13 an ideal choice for debtors who have assets that do not fit within California’s system of property exemptions.

What Debts Can Be Eliminated in Chapter 13 Bankruptcy?

Chapter 13 Bankruptcy can help Hayward residents with large amounts of unsecured debt to get a fresh financial start. These debts often include:

• Credit card debt;
• Debt from medical bills;
• Utility bills, including electricity and phone bills;
• Personal loans; and
• Junior liens that can be “crammed down,” such as a second mortgage that is wholly unsecured.

Contact a Hayward Chapter 13 Bankruptcy Lawyer

If you live in Hayward or in a surrounding area, the Law Offices of Melanie Tavare can help advise you about the bankruptcy process. We have years of experience helping debtors like you through Chapter 13 Bankruptcies. If you would like to schedule a consultation about your individual financial situation, you can contact us online or call us at 510-255-4646.

The Law Offices of Melanie Tavare is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code