Chico Chapter 13 Bankruptcy Lawyer

Basic Steps of a Chapter 13 Bankruptcy

Unlike a Chapter 7 bankruptcy, a Chapter 13 bankruptcy does not allow you to wipe out your debts but it also doesn't force you to hand over your property. Also called reorganization bankruptcy, a Chapter 13 claim requires you to use your income to pay off some or all of what you owe creditors during the course of three to five years. Before you file for a Chapter 13, it is wise to seek the counsel of an experienced Chico bankruptcy lawyer who can help you determine if this is the right form of debt relief for you.

Am I eligible for Chapter 13 bankruptcy?

In order to be eligible for a Chapter 13 bankruptcy, you must be able to prove to the court that you can afford to meet your payment obligations. Without a steady source of income, the court will probably not approve a Chapter 13 claim. The court may also reject a Chapter 13 claim if your total debt burden is too high. For example, your secured debts such as your house or your car cannot exceed $1,010,650.00 and your unsecured debts cannot be more than $336,900.00. Medical bills or credit card bills do not give creditors the right to "take away" a specific item of property, and therefore they are called "unsecured debts".

Chapter 13 bankruptcy isn't for everyone, and you can save yourself time and trouble if you seek the advice of a legal professional before you file. A Chico bankruptcy attorney from our firm can provide you with the helpful guidance and representation you need throughout the entire bankruptcy process to ensure that you have a favorable outcome.

Call a Chico bankruptcy attorney today!

The most important part of filing for Chapter 13 bankruptcy is your repayment plan. This plan will outline in detail how you will pay each of your debts over the allotted period of time. Certain debts must be paid in full ("priority debts") such as alimony, child support, wages you owe to employers and certain tax obligations. We will take the time to walk you through the entire process, so don't wait to call our team at Baker & Farris, Attorneys at Law.

Contact a Chico Chapter 13 attorney at our firm today to learn more about this form of debt relief!