A term people often use to describe Chapter 13 bankruptcy is debt reorganization. A debtor who finds debt relief by filing Chapter 13 bankruptcy repays a manageable amount of debt over a three- to five-year period, with greatly reduced interest. Debts are prioritized according to whether they are secured or unsecured.
Secured debts include home loans and car loans. If these debts are not repaid, creditors may seize the assets. One great advantage of Chapter 13 bankruptcy is that as long as debtors repay on schedule, creditors cannot seize assets during the repayment period.
Unsecured debts include credit card debt and medical bills. At the end of the repayment period of a Chapter 13 bankruptcy, remaining unsecured debt amounts are discharged. The debtor finds a fresh start through bankruptcy.
This type of bankruptcy literally buys time — and ultimately, debt relief — for burdened debtors. People from throughout Los Angeles County and surrounding areas obtain guidance through bankruptcy with the help of CHH Law, P.C. in Alhambra.
Chapter 13 bankruptcy may be the most suitable form of debt relief for debtors (individuals, couples or businesses) when they:
- Need a chance to repay debts without the pressure of ongoing creditor harassment, wage garnishment or bank account levies
- Are not eligible for Chapter 7 bankruptcy, as demonstrated by results of the government-mandated means test
- Have too many assets that will not be protected from liquidation in a Chapter 7 bankruptcy
- Have large amounts of home equity — too much to be exempted in a Chapter 7 bankruptcy
- Wish to catch up on unpaid mortgage premiums gradually, without the threat of foreclosure
- Need to repay back taxes or other undischargeable debts on an affordable repayment schedule
- Prefer to make their very best effort to repay debts rather than seek to have them discharged altogether
Have you reached a point where debt relief is imperative — but you are not sure of the best path forward? No one uses credit with the idea of not paying back the obligations that come with it. You may have arrived at this financial crisis because of some life event(s) you did not anticipate, such as losing your job, running into serious medical problems, experiencing marital breakdown or simply accepting one too many credit card offers. The healthy thing to do now may be to consider all your options — including filing bankruptcy.
Discuss Chapter 13 Bankruptcy As An Option In A Free Consultation With An Attorney
Take the first step toward a fresh start. Contact a California bankruptcy lawyer at CHH Law, P.C., at 626-539-9697 or by filling out an inquiry form on this website.
We offer assistance as needed for Chinese- and Spanish-speaking clients who file Chapter 13 bankruptcy.
我們講中國語文。Se habla español.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.