What is chapter 13 bankruptcy?
Chapter 13 bankruptcy is designed for people who do not qualify for a chapter 7 bankruptcy either because their income is higher than allowed in chapter 7 or because they want to protect non-exempt assets. Chapter 13 bankruptcy is more complicated and takes longer than chapter 7 bankruptcy. It involves a repayment plan for three to five years and a judge has to approve the plan. If in future your financial situation changes your repayment plan may have to be adjusted. Debts are treated according to their priority. Some debts such as income taxes have to be repaid in full in most cases while credit card creditors mostly only receive a portion of what was owed to them. At the end of the repayment period the remainder of your debts will be discharged.
For more information on Chapter 13 visit our Chapter 13 main page or check out our sacramentobankruptcylawyerblog.
As Vallejo bankruptcy lawyers we serve the people in Vallejo as well as all surrounding Counties such as Contra Costa County, and Sacramento County.