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Chapter 13

Chapter 13 HomepageAlthough most individuals and couples choose to file Chapter 7 bankruptcy, Chapter 13 bankruptcies allow powerful reorganization effects.  Chapter 13 bankruptcies create payment plans to pay off debts, including taxes, attorney’s fees, vehicles, arrears on real properties, and general unsecured debts, such as credit cards.

Chapter 13 is different from Chapter 7 in that there is a plan that last generally for 36-60 months.  Most Chapter 7 cases take approximately 3 months from the date of filing.

One issue in California that can limit an ability to file a Chapter 13 bankruptcy is the amount of debt.  The current limits for debt in Chapter 13 are $383,175 in unsecured debt, and $1,149,525 in secured debt.  Additionally, Chapter 13 is only applicable to individual and joint filers

Unlike Chapter 7, in order for a debtor under Chapter 13 to receive a discharge, the debtor must file, obtain confirmation of, and make scheduled payments under a Chapter 13 plan. A plan confirmed by the bankruptcy court redefines the legal obligations between the debtor and the creditor.

Chapter 13 bankruptcy cases at the Henshaw Law Office can commence with small down payment, with any additional fees and costs potentially covered through the confirmed Chapter 13 repayment plan.

Call the Henshaw Law Office today to determine whether Chapter 13 bankruptcy is the best solution for you.

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