Chapter 13 is a section of the Bankruptcy Code which helps certain qualified individuals, or small business owners that are not a corporation or a partnership, who desire to repay their creditors but are experiencing financial distress. For example, filing a Chapter 13 bankruptcy gives you the opportunity to pay off past due mortgage arrearages or car payments over 36-60 months, giving you a period of time to catch up and maintain possession of your property.
Sometimes, this can be referred to as a “mini Chapter 11″ because you typically repay something to your creditors and retain your property and make payments under a bankruptcy plan. A Chapter 13 bankruptcy is often considered something of a debt repayment plan for individuals, often ranging from zero to 100% of one’s unsecured debt.
Who is eligible to file a Chapter 13 bankruptcy?
Filing a Chapter 13 bankruptcy is an option for people with regular income who owe, on the date the bankruptcy petition is filed, less than $360,475 in unsecured debt and $1,081,400 in secured debts. The debts used to calculate these limits must be noncontingent and liquidated, meaning that they must be for a certain, fixed, or easily determinable amount. They cannot be subject to any conditions or bona fide disputes. If they are legitimately disputed or not liquidated, then those amounts may not be factored into the debt limit calculations. The Riverside Chapter 13 bankruptcy attorneys at Reid & Hellyer can help you determine your eligibility.
Since some changes to the Chapter 13 bankruptcy process that were enacted in 2005, you may be required to do a Chapter 13 if your annual income is greater than the median income for the region where you are filing and if the “means test” shows you have more than $100-$167 per month to pay to your creditors. Also at that time, your allowable monthly expenses will primarily be whatever IRS guidelines allow.
What are the benefits of Chapter 13?
The benefits of a Chapter thirteen bankruptcy include protecting individuals from the efforts of debt collectors; permitting individuals to maintain ownership of their personal and real property; and allowing people to repay their debts with a schedule involving reduced payments.
A Chapter 13 bankruptcy man enable you to discharge debts that wouldn’t be dischargeable under other chapters of the bankruptcy code, such as marital dissolution equalization payments.
Wiping out junior liens on real estate may be a possibility, too. If the total amount owed to your first mortgage is greater than fair market value of your property, you can eliminate the security interest to junior lienholders and treat them as general unsecured creditors in your bankruptcy plan (thereby possibly being able to pay them less than 100%).
Certain tax repayments can be made easier by virtue of elimination of interest payments. One of the Riverside Chapter 13 bankruptcy attorneys can help you gain a better understanding of the benefits to a Chapter 13 bankruptcy.
At Reid & Hellyer, your Chapter 13 bankruptcy will be handled by some of the best Riverside bankruptcy attorneys in the Inland Empire and Southern California. Notably, Riverside Chapter 13 bankruptcy lawyer Mark C. Schnitzer has been recognized as AV rated by Martindale-Hubbell, the prestigious attorney-rating service, and has been recognized as among the “Best Inland Empire Lawyers” by Inland Empire Magazine. Riverside Chapter 13 bankruptcy attorney Martha Warriner has been recognized as a “Legal Eagle” by Inland Empire Magazine, noting her community ties. Both attorneys work within the firm of Reid & Hellyer, which has been recognized as one of the Best Law Firms in America by U.S. News & World Report and Best Lawyers.
Debt should not ruin your life. Get our debt absolved with the help of the Riverside bankruptcy attorneys at Reid & Hellyer, APC and get in touch with a personal bankruptcy attorney that can help you regain sound financial footing.
For help on how to find the right bankruptcy lawyer, contact our Riverside bankruptcy lawyers online or call (951) 682-1771.