Much like Chapter 7, Chapter 13 filings stop creditor calls by way of an “automatic stay”. This particular filing allows for a reorganization of debt rather than liquidation of debt. If a debtor has sufficient income to repay some or all of their debt, then this plan might be beneficial as it sets up an affordable repayment plan. This is helpful if you are facing foreclosure or auto repossession by allowing the debtor to retain possession of the asset. The Chapter 13 repayment plan allows the debtor to take any mortgage arrears or delinquent property taxes and pay back the mortgage company over a three to five year period. This provides the debtor an opportunity to impose amenable repayment terms that favor the debtor, rather than unrealistic terms that would otherwise be set by creditors.
Chapter 13 Bankruptcy
At Matrix Law Firm’s Bankruptcy Lawyers, our California bankruptcy attorney team is highly qualified in all bankruptcy related matters and well versed in the United States Bankruptcy Code. If you are considering bankruptcy, you need a bankruptcy Matrix Law Firm’s Bankruptcy Lawyers you can trust, one that will competently guide you through the bankruptcy process.
Chapter 13 bankruptcy, sometimes known as a “Wage Earner Plan,” is a way for consumers/debtors to undergo a financial reorganization which is supervised by the bankruptcy court. While Chapter 7 offers an immediate relief to secured and unsecured debt, Chapter 13 is considered more of a rehabilitation program.
Under Chapter 13 bankruptcy, the consumer will be able to hold on to all of their property if they can repay their creditors over a three to five year period. The California bankruptcy attorney team at Matrix Law Firm’s Bankruptcy Lawyers can walk you through Chapter 13 bankruptcy effectively and efficiently.
How Does Chapter 13 Happen?
There are countless ways in which a person can find themselves in such harsh debt problems that they seek out Chapter 13 bankruptcy. Illness, loss of work, divorce, bad luck, poor planning and other unforeseen circumstances can all contribute to the kinds of debt problems that Chapter 13 bankruptcy is designed to help fix.
Credit Card Debt
Throughout California, and the United States, people are overwhelmed from the affects of credit card debt. Massive credit card debt is one of the major causes of Chapter 13 bankruptcy, because people use credit cards when things get tight financially and can’t pay them back. Often, aggressive un-marketing strategies by credit card companies lead consumers to carry balances that are beyond their means. A bankruptcy Matrix Law Firm’s Bankruptcy Lawyers can help you evaluate your financial circumstances and help you through these financial circumstances.
Chapter 13 bankruptcy is designed to enable each debtor, under court protection and supervision, to apply a portion of future earnings to the payment of some or all of their debts over a period of time. The consumer/debtor is protected from creditors through the automatic stay while the plan of repayment is calculated and carried out. It is sometimes also called “Consumer Debt Adjustment.”
Matrix Law Firm’s Bankruptcy Lawyers works tirelessly to help each and every client we work with. Our California bankruptcy attorney team is well respected in the legal community, and our successful track record of helping people through Chapter 13 bankruptcy is unparalleled.
Contact Matrix Law Firm’s Bankruptcy Lawyers today.
