Woodland Hills Chapter 13 Bankruptcy Attorneys
Chapter 13 Debt Reorganization in Northern and Southern California
We at ANH Legal Group offer the full range of bankruptcy solutions, including Chapter 13 bankruptcy. At the ANH Legal Group, our attorneys recommend Chapter 13 bankruptcy for people in a variety of situations when Chapter 7 isn't available or won't work. Please contact our office for a free consultation about the ways Chapter 13 bankruptcy might work for you.
Why File for Chapter 13 Bankruptcy?
Here are some of the main reasons why someone would enter the commitment of a Chapter 13 bankruptcy case:
- Ineligibility for Chapter 7 debt discharge due either to a relatively high household income or a prior Chapter 7 discharge within the previous eight years
- Need to protect nonexempt assets that would otherwise be liquidated in Chapter 7 for unsecured creditors
- Opportunity to cure defaults under a mortgage or car loan over the full term of the Chapter 13 debt repayment plan
- Need to pay substantial nondischargeable debts for recent taxes, student loans or family court support orders
In some cases, you'll have the option of filing for Chapter 7 or Chapter 13 bankruptcy relief. The immediate benefits - stop creditor harassment, stop foreclosure, stop repossession and stop other creditor action - are very similar, but the ongoing obligations are very different. Our analysis of your situation can show which will work better for you if you have a choice between a Chapter 7 or Chapter 13 bankruptcy filing.
One advantage of Chapter 13 is the leverage it offers when you have no equity in your house, and owe on a second mortgage. If you're underwater on the first mortgage, you'll be able to treat the second mortgage as an unsecured claim that can be discharged. You cannot strip a second mortgage in a Chapter 7 bankruptcy filing.
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Chapter 13 bankruptcy ends with a discharge of unpaid debts in much the same way that Chapter 7 bankruptcy does, but with many important differences. The most obvious one is the monthly payment you make for a period of three to five years under your Chapter 13 debt repayment plan. Under a Chapter 13 bankruptcy filing, your debt is consolidated and reorganized into a manageable monthly payment, which is paid to a bankruptcy trustee. Payments are then disbursed to your creditors in accordance with the court-approved repayment plan.
If you miss even a single payment under the Chapter 13 plan, your case can be dismissed or converted to Chapter 7 liquidation. Therefore, Chapter 13 bankruptcy is not a good idea for people with doubts about their ability to maintain a steady income.
