Chapter 13 Bankruptcy

Do any of the Following Statements Describe you:

  • I am behind on my house and/or car payment and may lose one or both to repossession or foreclosure.
  • I owe the IRS or the State of California huge amounts from years past and the payments are too much for me to handle.
  • Credit Card bills are crushing me.
  • I own rental properties and the tenants are not paying rent.

Chapter 13 Bankruptcy is the most commonly used form of Bankruptcy by homeowners who have fallen behind on their home mortgage payments.  Under Chapter 13 Bankruptcy, the Debtor is permitted to propose a plan to the Chapter 13 trustee based on the Debtor’s income, to get current on the house payments over an extended period of time. In Chapter 13, the debtor, depending on income level, can also absolve him or herself of any and all unsecured debt.

Chapter 13 Bankruptcy also comes with the ability to “cram down” or “lien strip”  the debt owed on a number of assets, for example a car or a house. There is the possibility of stripping away a second or third lien against a property.

If you are currently employed or have a steady stream of income and are behind on your house payments, a Chapter 13 Bankruptcy filing is the only way to guarantee a postponement of a pending sale date. It is important to not wait until the day before the sale date as there are a significant number of documents that will need to be gathered to go with your Chapter 13 Bankruptcy filing. Of course there are situations where it is possible to file an “emergency Chapter 13 Bankruptcy Case” to stop a sale date, but there will be very little time to gather the requisite documentation for the complete Chapter 13 filing after that is done.

The Bankruptcy Guy is a designated debt relief agent. He provides legal assistance to consumers seeking relief under the Bankruptcy Code. He represents consumers, individuals, debtors and businesses in chapter 7, chapter 11 and chapter 13 bankruptcy matters throughout all of San Diego County.

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