Chapter 13: Reorganize your debt over time under a supervised plan while still receiving a discharge.
Chapter 13 is a reorganization bankruptcy designed for debtors with regular income who have enough left over each month to pay back at least a portion of their debts through a repayment plan. Even though most Chapter 13 filers make too much money to qualify for Chapter 7 bankruptcy many debtors choose to file for Chapter 13 bankruptcy because it offers many benefits not available in Chapter 7, such as the ability to catch up on missed mortgage payments or strip wholly unsecured junior liens from your house.
In Chapter 13 bankruptcy you get to keep all of your property including nonexempt assets—however you’ll have to pay creditors an amount equal to the value of your nonexempt property. In exchange you pay back all or a portion of your debts through a repayment plan. The amount you must pay back will depend on your income, expenses, and type of debt.
Hedtke Law Firm will help you determine if bankruptcy is right for you, what kind of bankruptcy is best for you, and what your rights are moving forward. Please Call 626-593-1556 to schedule a free consultation.