Chapter 13 Debt Relief in Northern and Southern California
At the Naziri Law Group, our attorneys recommend Chapter 13 bankruptcy for people in a variety of situations when Chapter 7 isn't available or won't work. Contact us at any of our four California offices for a free consultation about the ways Chapter 13 might work for you.
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Chapter 13 ends with a discharge of unpaid debts in much the same way that Chapter 7 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.
If you miss even a single payment under the Chapter 13 plan, your case can be dismissed or converted to Chapter 7 liquidation. Chapter 13 is not a good idea for people with doubts about their ability to maintain a steady income.
Here are some of the main reasons why someone would enter the commitment of a Chapter 13 bankruptcy case:
- Ineligibility for Chapter 7 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 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 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 them.
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.
The lawyers of the Naziri Law Group offer personalized service and practical advice to people in Greater Los Angeles, Orange County and the Bay Area. Contact us at any of our four locations throughout California for a free consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the U.S. Bankruptcy Code.
