If you are contemplating bankruptcy as a debt relief option, our firm wants to help. Our attorneys at Wadhwani & Shanfeld have worked with more than 15,000 clients to find a debt relief solution that works best for their situation, be it bankruptcy or a debt settlement. We are dedicated to providing our clients with a custom plan to overcome mounting debt and find a path towards financial stability.
Why Chapter 13 Bankruptcy?
Many people choose to file bankruptcy as a way to get out from under their debt and start fresh. While Chapter 7 is the most common way to file bankruptcy, Chapter 13 can be an appealing alternative. Some people choose to file Chapter 13 because they did not fit the income requirement for Chapter 7, or because they wished to retain certain possessions they would have lost in Chapter 7.
Chapter 13 Bankruptcy could be particularly useful for:
- Paying off non-dischargeable debt
- Resolving debts without losing nonexempt property
- Avoiding home foreclosure
- Retaining a self-employed business property
Chapter 13 bankruptcy, also called reorganization bankruptcy, enables you to resolve debt issues without liquidating your assets. Through Chapter 13 bankruptcy, you can schedule manageable payments towards your debt over a 3-5 year period. The period of the repayment plan and the payment amounts will depend on your financial situation and the sum you owe. In most situations, the indebted party will not pay back the full amount they owed by the time the repayment plan has ended. This might also depend on the requirements of the lender and their preferences.
Who Can File for Chapter 13 Bankruptcy?
In order to qualify for Chapter 13 bankruptcy, you must be in a position to pay the required monthly payments. If your income does not allow these payments, the payments may be negotiated, or you may consider filing Chapter 7 bankruptcy instead. As a rule, the legal limit for filing Chapter 13 bankruptcy is $394,725 for unsecured debts and $1,184,200 for secured debts.
Contact Wadhwani & Shanfeld to schedule a free consultation with our Palmdale bankruptcy attorneys.