San Jose Chapter 13 Bankruptcy Attorney
Assisting Debtors in Filing for Bankruptcy
Chapter 13 bankruptcy is a form of
bankruptcy that is commonly referred to as the "wage earner plan." This
is because this type of bankruptcy is meant for debtors who earn enough
income to pay back all or a part of their debt under a restructured payment
plan. In Chapter 13, the debtor makes payments under the new plan for
three to five years, with the possibility of getting remaining debts discharged
at the end.
Unlike in
Chapter 7 bankruptcy, the Chapter 13 filer is not at risk of losing his or her assets
to liquidation (or the selling off of the assets so that creditors can
be repaid). Not only does bankruptcy provide you with a clear path for
getting your debt under control, but it can also offer you instant protection
from negative debt collection actions such as creditor lawsuits, wage
garnishment, vehicle repossession and foreclosure.
This is due to the fact that an automatic stay (or a legal hold) on such
collection activities goes into effect as soon as the bankruptcy is filed.
If you think you might be able to benefit from Chapter 13 bankruptcy,
make sure you consult with a lawyer first! Our San Jose bankruptcy attorneys
at Arnold Law Group, APC can help you learn about your options for filing
for this type of bankruptcy. Once you decide that this is the debt solution
for you, we can guide you through the entire process, from start to finish!
How do I qualify for Chapter 13 bankruptcy?
In order to be eligible for Chapter 13 bankruptcy, you must not have more
than $1,149,525 in secured debt, and you also must not have more than
$383,175 in unsecured debt. (With secured debt, the creditors have the
right to repossess certain property when the debt is not paid. With unsecured
debt, the creditors are not allowed to do this.) In addition to meeting
the debt thresholds, you must also be able to prove that your income is
high enough and stable enough for you to be able to make payments under
a Chapter 13 repayment plan.
If you have too much debt or your do not make enough money, you may want
to ask a lawyer about your options for filing for Chapter 7 bankruptcy
instead. Because bankruptcy is highly complex and not the right solution
for everyone, it is crucial that you seek legal counsel before you file
for this form of debt relief.
Contact Arnold Law Group, APC for assistance from a knowledgeable legal professional! Once you get in
touch with us, we can provide you with a
free case evaluation.