Articles Posted in Chapter 13

A tax bill can be especially difficult when the IRS and the California Franchise Tax Board are both seeking payment. You may be able to handle many prebankruptcy tax debts in a Chapter 13 plan instead of trying to maintain separate collection arrangements alongside credit card and car payments. The plan can spread required payments over several…

A Chapter 13 plan can last years. During that time, you might make the last payment on a car loan, receive insurance money after an accident, or learn that an insurer has paid the vehicle lender. It is natural to ask: If the car creditor is no longer owed money, why am I still paying the…

Most people enter a Chapter 13 consultation hoping to keep their car. Sometimes, however, the vehicle payment is the expense preventing a workable plan. A car with repeated repairs, high insurance, or a loan far above its value can drain money needed for rent, food, taxes, and the Chapter 13 payment. Surrendering a car is…

A common promise in bankruptcy advertising is that Chapter 13 can “cut your car loan down to the car’s value.” That can happen in some cases. It can also be entirely unavailable for a particular loan. Before counting on savings, separate two issues: the amount of the secured claim and the interest rate used to pay it under…

For many Californians, losing a car would make it harder to work, take children to school, or handle medical appointments. That is why the first question at a bankruptcy consultation is often simple: Can I keep my car? In many Chapter 13 cases, the answer is yes. Chapter 13 offers a way to propose payments over…

When most people hear the word “bankruptcy,” they immediately think of walking away from debt and paying nothing to creditors. While that may be the public perception, it does not accurately describe many people who file Chapter 13 bankruptcy. In fact, one of the fundamental reasons people choose Chapter 13 is because they want to…

If you’re considering filing Chapter 13 bankruptcy in Sacramento or anywhere in the Eastern District of California, one of your biggest questions is probably, “How much does a Chapter 13 bankruptcy attorney cost?” That is a reasonable concern. Most people considering bankruptcy are already dealing with overwhelming financial stress. The thought of paying thousands of dollars…

Filing Chapter 13 bankruptcy is not simply a legal process—it is a commitment. While Chapter 7 bankruptcy may be completed in a matter of months, Chapter 13 requires debtors to stay focused on a financial plan that typically lasts three to five years. For many Sacramento-area residents, Chapter 13 offers an opportunity to save a…

For many people struggling with debt, bankruptcy appears to offer a fresh start. However, some individuals find themselves caught in one of the most difficult situations in bankruptcy law: they have valuable assets that may be lost in a Chapter 7 bankruptcy, but they also cannot afford the monthly payments required in a Chapter 13…

One of the biggest fears people have before filing Chapter 13 bankruptcy in Sacramento is transportation. Many people worry: The good news is that Chapter 13 bankruptcy is often designed specifically to help people keep reliable transportation while reorganizing debt. In many cases, debtors actually end up in a more stable vehicle situation after filing…