Filing a Chapter 13 Bankruptcy in San Diego may be appropriate for you if you are overwhelmed with debt and trying to find a way to get back on track without losing your assets like your home. . There are a few things to know about a Chapter 13 bankruptcy.
1. Filing a chapter 13 bankruptcy can be the answer to help you regain control of your finances, in some cases you only pay back what you can afford to pay back.
2. A chapter 13 can be filed by any individual even if they are self-employed or operating a business. If you are earning regular income a chapter 13 can help restructure your debts into either a 3-year or 5-year repayment plan. This time period helps you catch up and bring debt current.
3. Once a chapter 13 petition is filed you have the opportunity to save your home from foreclosure as long as other requirements are met such as continuing to pay the current mortgage that comes due after filing the petition.
4. Chapter 13 bankruptcy is like a debt consolidation, where you (the debtor) makes payments to a chapter 13 trustee, who then distributes payments to the creditors. During the chapter 13 plan creditors are forbidden to continue or start collection efforts. You often pay only pennies on the dollar at zero interest.
5. Chapter 13 protects you from being harassed by creditors and you have no direct contact by them as well.
6. A chapter 13 has special provisions that can possibly protect co-signers.
7. Chapter 13 is unique from a chapter 7 bankruptcy in the type of debts that are dischargeable. You may be able to discharge taxes and other obligations you thought were not dischargeable. No two cases are ever the same, so if you think a chapter 13 might work for you or you are not sure what chapter is best for you give me a call for an assessment today.