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Chapter 13 Bankruptcy

When you’re overwhelmed with your current financial situation, it’s easy to feel as though you don’t know which way to turn. Trying to figure out answers can be stressful and confusing if you don’t have the help of an experienced Fresno Chapter 13 bankruptcy lawyer. Thankfully, you can take steps to improve your financial future by filing for bankruptcy. 



While bankruptcy is not right for everyone, for those individuals who need a fresh start, Chapter 13 bankruptcy may allow them to get on a repayment plan and to get out of their current stressful situation. If you have an income, you should consult with a Fresno bankruptcy lawyer as soon as possible about whether or not Chapter 13 is right for you.

Chapter 13 bankruptcy allows a debtor to get a handle on his or her financial situation as quickly as possible. It is important, however, to understand the distinctions between Chapter 7 and Chapter 13 bankruptcy. You can use Chapter 13 bankruptcy to make up for missed mortgage or car payments, stop interest from accruing on your tax debt, pay back taxes, prevent your house from being foreclosed and to keep non-exempt valuable property.

How Chapter 13 Bankruptcy Works In California

In a Chapter 13 bankruptcy, you will propose a 3- to 5-year repayment plan to your creditors, offering to pay off a portion of or all of the debts associated with your financial challenges by using your future income. In the event that you can maintain all of the terms of your repayment plan, the remaining dischargeable debt will be released at the end of the payment plan.



The amount that will be repaid is determined by several different factors including the debtor’s disposable income as outlined by a California means test. The total amount paid to the creditors in a Chapter 13 plan in Fresno must also be at a minimum, the same amount as what creditors would have gotten if you had filed for Chapter 7 bankruptcy.

The majority of individuals who choose to file for a Chapter 13 bankruptcy in Fresno are those debtors who intend to keep secured assets such as a car or a home when there is a higher level of equity in the secured assets than they are capable of protecting with their bankruptcy exemptions. Chapter 13 bankruptcy can be seen as a reorganization in comparison with Chapter 7 bankruptcy, which is a liquidation.



In a Chapter 13 bankruptcy in Fresno, you can make up your overdue payments over the course of time and even reinstate the original agreement in some situations. A Chapter 13 bankruptcy may be the better choice for you if you have valuable non-exempt property and intend to keep it.