get in touch

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. Unless you fall out of your bankruptcy plan or convert to a Chapter 7 or 11, your cosigner is usually protected by you making your Chapter 13 plan payments.

Protecting Co-Signers From Collections

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.

Saving Your Vehicle From Repossession

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.

Stopping Foreclosure Indefinitely

While many businesses claim to offer debt consolidation services, they often make matters worse for their indebted clients. You can still be sued even while making payments to these types of companies. You can never be sued while in a Chapter 13 bankruptcy approved by the federal court.

Debt Consolidation Done Safely

Some of Chapter 13 bankruptcy benefits are:

- Stop foreclosure
- You can't be sued for late payments
- Protect your home equity
- Save your vehicle from repossession
- Protect co-signers from collections
- Cram down vehicle loan to vehicle’s actual value.
- Mortgage and car payment arrears into payment plan.

A Fresh Start:

Some people with higher incomes do not qualify for Chapter 7 but are still eligible for bankruptcy. A Chapter 13 is a good option for debtors who can afford a predictable monthly payment. 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.

Don't qualify for Chapter 7?

Chapter 13 Bankruptcy is a better option than Debt Consolidation

Chapter 13 Bankruptcy

helping good people with bad debt

helping good people with bad debt

Stockton • Elk Grove • Pleasanton • sacramento • los angeles • Surrounding Areas



Read the


always sharing more on instagram