Chapter 13 Bankruptcy
Chapter 13 BankruptcyIndividuals and families who do not qualify for eliminating their debts under Chapter 7 bankruptcy, or who wish to restructure their debts into a reduced payment plan have the option of filing personal bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. By filing Chapter 13 bankruptcy, you need only to pay a portion of your debt over a three-year or five-year period, typically at a reduced interest rate, free from additional penalties and fees, a process that is managed for you by a bankruptcy trustee.
Although most people seeking bankruptcy protection hope to eliminate their debt under Chapter 7, filing Chapter 13 is often more advantageous and should not be dismissed as a lesser form of bankruptcy. The primary advantage is that all types of debt may be included in the plan, including student loans that are not dischargeable under Chapter 7.
At Liviakis Law Firm, we practice primarily in the area of debt relief. We are selective about working with clients with complex debt problems who are interested in moving toward a secure financial future. When we meet to discuss your debt and financial objectives, we will explain the process clearly and show you how Chapter 13 may be the better solution to helping you build a secure financial future. Contact us today for a free initial phone consultation.
Citrus Heights Debt Repayment AttorneySome advantages of working with a Sacramento Chapter 13 bankruptcy attorney include:
- Reduced interest rates and elimination of penalties and fees: I will work with your credit card creditors and bankers to negotiate a lower interest rate and the discharge of all accumulated penalties and fees that have contributed to your debt. By including your commercial debt in a supervised restructured plan, you can save thousands of dollars over the length of your original repayment period. In many cases, your monthly payout will improve your cash flow.
- Keep your house and car: You can reaffirm your intent to continue to make your mortgage and car loan payment. You can also reduce the loan amount on your car to Kelly Blue Book value, generally saving you thousands of dollars off the original loan amount.
- Stripping off a “junior” mortgage: If you added a second or third mortgage to your original home loan, Chapter 13 allows qualified filers to include the amount of the “junior” mortgage into the debt restructure. You can keep your house and restructure your mortgage payment to meet your needs.
- Student loans: Usually every dollar of government-backed student loans will be repaid, but you can restructure your payments by including the loans in your repayment plan.
- All other debt: Tax debt, judgments and arrears for all types of debt can be included in the restructure.
- Stop creditor actions: When you file, an automatic stay of execution is placed on all creditors’ collections actions against you. Even if you are only one day away from facing home foreclosure, or if the bank is already in the process of auto repossession, you can stop the legal process. This includes putting a stop to wage garnishments and collections accounts that may already be in place against you.