Chapter 13 or Reorganization Bankruptcy
Often called “reorganization” bankruptcy, Chapter 13 is an interest-free debt repayment through which the filer is expected to pay off debts in monthly increments over a five-year period.
Chapter 13 typically takes longer to complete and entails more requirements than Chapter 7; however, it is better if you have a consistent source of income and specific assets you wish to retain, such as a home or a small business.
At Khan Law , we assist clients throughout the Tri-Valley and East Bay area, including Pleasanton, Fremont, Dublin and Livermore. We help our clients in creating and completing repayment plans through Chapter 13 bankruptcy. In doing so, we help them restore their financial freedom while retiring their debts in a legal and predictable fashion.
Debts that are generally consolidated in a Chapter 13 bankruptcy plan include:
- Mortgage arrears
- Vehicle loan balances
- Student loans
- Credit card debts
- Other unsecured debts
Protection from Collections and Predictable Payments
While you are in a Chapter 13 debt repayment plan, creditors may not pursue collection actions against you, and they are required by a federal bankruptcy court to adhere to the terms of the repayment plan. Because the plan is designed with your budget in mind, you will never experience sudden jumps or changes to your repayment amount. The goal is for you to have a predictable monthly payment that you will continue to pay for the duration of your repayment plan period.
Learn Your Options. Contact Chapter 13 Lawyer, Alia Khan
To discuss your circumstances and options with an experienced Chapter 13 bankruptcy attorney contact Khan Law online or by calling 925-264-9083.
What Other Benefits Can A Chapter 13 Bankruptcy Provide?
- Debt consolidation done safely: While many businesses claim to offer debt consolidation services, they often make matters worse for their indebted clients. By hiring Alia Khan as your legal representative, you can be sure of having a knowledgeable advocate who will work for your goals and help you become debt-free in a safe and secure legal framework of a Chapter 13 repayment plan.
- Stopping foreclosure indefinitely: If your home is in foreclosure, a Chapter 13 bankruptcy filing will stop the foreclosure any time prior to the sale and allow you to repay your mortgage arrears through your Chapter 13 bankruptcy. You will remain obligated to make all future mortgage payments directly to the mortgage company, but it may not foreclose to collect any outstanding mortgage payments. If you have equity in your home, you can file a Chapter 13 bankruptcy, protect your equity and repay your mortgage arrears over a five-year period.
- Saving your vehicle from repossession: If your car is in danger of being repossessed, a Chapter 13 bankruptcy will stop the finance company from repossessing your car. Your past-due payments and the entire balance on your vehicle loan will be consolidated into your Chapter 13 repayment plan which you will complete within five years. The vehicle finance company will no longer be able to repossess your car, and you will no longer have to make direct payments to the finance company. The only payment to be made is to your Chapter 13 trustee.
- Consolidating student loans: Although you may not eliminate student loans in a Chapter 7 bankruptcy, you can consolidate them, with your other bills, in a Chapter 13 bankruptcy. Simultaneously, you can stop all collection actions against you. Bankruptcy attorney, Alia Khan, will stop the collection action and garnishments related to student loan debts and consolidate your bills so that you may repay them in a plan that is feasible for you.
Protecting co-signers from collections: If you file for Chapter 13 bankruptcy, the co-signers to your loan receive the same protection that you do. This means your co-signers will be protected from aggressive collection activity, and all creditors must wait to be paid through your repayment plan.
If you have questions relating to Chapter 13 Bankruptcy – please do not hesitiate to contact us.