Chapter 13

Chico Chapter 13 Bankruptcy Lawyer

Helping Clients With Bankruptcy in Butte County

If you or someone you care about is dealing with the burden of unmanageable debt, Chapter 13 bankruptcy may be a workable solution to help you get back on track. This type of bankruptcy is sometimes referred to as "wage-earners bankruptcy" because it is actually a debt reorganization and repayment program that gives you the ability to create a feasible payment plan based on your income, expenses and debts to pay back what is owed.

In order to determine whether Chapter 13 bankruptcy is the right choice for you, it is in your best interests to discuss your financial situation with a knowledgeable Butte County bankruptcy attorney. You will need to understand what bankruptcy can and can't do for you, and how it will affect your future, so you can make an educated decision about the course of action you should take in your particular circumstances.

Considering bankruptcy? Reach out online or call (888) 325-1181 to schedule a consultation. Our Chico Chapter 13 lawyer can answer your questions and determine if this is a good option for you.

Advantages of Filing for Chapter 13 Bankruptcy

Unlike Chapter 7 bankruptcy, where assets are liquidated and debts are cleared, you are able to keep the things you have worked so hard to acquire over time. 

There are many benefits to Chapter 13 such as:

Step-by-Step Guide to Filing Chapter 13 in California

Filing for Chapter 13 bankruptcy in California is a complex legal process, so it's important that you understand the different steps involved and the necessary paperwork: 

  1. Complete an application that is known as a petition. This document typically includes information about your income, assets, liabilities, and other relevant financial information. Additionally, you must include a detailed list of your creditors, including the amount owed to each creditor.
  2.  Once you have completed the petition, it must be filed with the appropriate court for review and approval by a judge.
  3. After filing your petition, you must attend a meeting known as a 341 Meeting of Creditors. At this meeting, you will answer questions from the trustee and creditors about your finances. During this process, you will also submit any required documents that are needed to complete the filing process.
  4. Once your petition has been granted by a judge, you will be required to make regular payments over the course of three to five years. During this time, it is important to stay current on all of your payments to ensure that the bankruptcy is successful. If you fail to make any of these payments, the court may revoke your filing and require that you repay all creditors in full.
  5. At the end of this period, all remaining unsecured debt will be discharged.

Eligibility Criteria for Chapter 13 Bankruptcy

Considering filing for Chapter 13? In order to qualify, you must:

  • Be earning a regular income
  • For cases filed between April 1, 2022 and March 31, 2025, your debt must be within the limits:
    • Unsecured Debt: $465,275
    • Secured Debt: $1,395,875
    • Be sure to speak with an attorney for the latest on debt limits
  • Your tax filings must be current
  • You cannot have filed Chapter 7 in the last 4 years
  • You cannot have filed Chapter 13 in the last 2 years
  • You cannot have a bankruptcy petition for Chapter 7 or 13 that was dismissed in the last 180 days for certain reasons such as failing to appear in court

Protecting Your Assets with Chapter 13 Bankruptcy

In California, when filing for Chapter 13 bankruptcy, you are generally allowed to keep both your exempt and non-exempt property as there is no asset liquidation involved. This is because the debtor agrees to a repayment plan to pay off their debts over time.

California has two sets of state exemptions that you can choose from, making it unique. In other states, filers must choose between state or federal bankruptcy exemption laws. In California, only state exemptions are used to keep property during bankruptcy.

Even if your equity exceeds the standard exemptions, under Chapter 13, you typically retain all your property. However, the specifics will depend on your circumstances, and it is recommended to consult with a legal professional for advice based on your financial situation. If you are considering Chapter 13, reach out to The Law Office of Nikki Farris at (888) 325-1181.

Contact Our Chico Bankruptcy Attorney for a Fresh Start

At The Law Office of Nikki Farris, our extensively experienced team of legal representatives has been representing clients in need of solutions for overwhelming debt for several years. We are passionate about helping people become debt free and are relentless about pursuing this goal for our clients. There is a light at the end of the tunnel and we are standing by to assist you in making the right decisions to start the process of taking control of your finances and making a brighter future.

Get Professional Bankruptcy Support in Chico at our firm now for proficient bankruptcy preparation and filing services. Call (888) 325-1181 for a bankruptcy consultation.

  • “Nikki Farris is very easy to talk to, professional and knowledgeable.” - Rachele T.
  • “Fast consultation and excellent service.” - Lucian R.
  • “Nikki was so kind, so compassionate.” - Kali H.

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