San Jose Family Law & Bankruptcy Attorneys

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Call Us Today 408.457.7310

Chapter 13

Call Us Today 408.457.7310

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.

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