You are in:
Bankruptcy Law Firm
Bankruptcy Overview
How to Stop Creditors
Handling Bankruptcy
Chapter 7 Bankruptcy
Chapter 13 Bankruptcy
Understanding Chapter 13 Bankruptcy
Instant Relief - Chapter 13
Chapter 13 Timeline
Alternatives to Bankruptcy
Life After Bankruptcy
Bankruptcy News
Debtor Laws
Creditor Laws
Debt Calculators
Client Forms
Client Forms
Client Forms

Chapter 13 Bankruptcy - Fresno Bankruptcy Attorney

While Chapter 7 bankruptcy is the least complex, it is not always right for everyone. If you have substantial assets that you wish to protect, Chapter 13 bankruptcy may be a better option. When you file for Chapter 13 bankruptcy, you're usually able to retain all of your assets. In exchange, you're expected to pay back a portion of your debt as determined by your current income level and the types of debt that you owe. Typical Chapter 13 repayment plans last anywhere from 3 to 5 years, and during this time you are expected to repay all of any priority and/or secured debts that you may have incurred. Priority debts are typically debts such as back taxes, while secured debts can be anything from your mortgage arrears to miss payments on a car. Usually you won't have to pay back any non-priority debts in full. Unsecured debt from credit cards, for instance, may be paid partially or not at all depending on your income level.

Chapter 13 bankruptcy is also beneficial for individuals who have a lot of priority or secured debts which cannot be discharged under a Chapter 7 bankruptcy. Student loans, for instance, cannot be discharged under Chapter 7 bankruptcy which means that you would still be responsible for these debts even if other debts were discharged. Under Chapter 13 repayment plan however, you may be able to repay a portion of your student loans which will bring you current by the time the repayment plan is complete. This can help you avoid going into default on your student loans, and can preserve your ability to obtain additional student loans in the future, if needed.

If you do decide to file for Chapter 13 bankruptcy, be prepared to live under a strict budget for the duration of your repayment plan. While you are repaying your debts, your estate will be managed by the bankruptcy court's appointed trustee - this trustee will have the final say so over any large purchases that you may wish to make during your repayment period. You will not be allowed to incur any significant amount of new debt, and you will be expected to put all discretionary funds towards repaying what you owe. Therefore, financial discipline is essential to successfully complete a Chapter 13 bankruptcy repayment plan. Nevertheless, this discipline is well worth it as a Chapter 13 repayment plan can cover significantly more types of debt than a Chapter 7 while allowing you to retain your possessions throughout.

If you're considering filing for bankruptcy, and you'd like to maintain control of your assets, a Chapter 13 bankruptcy may be right for you. Contact our offices today and arrange for your free initial case in relation. Our competent, experienced, Fresno County bankruptcy attorneys can assist you with understanding the benefits of filing for Chapter 13 bankruptcy in Fresno County. We can provide you with solid, reliable legal advice that will allow you to make the best decision possible that comes to regaining your financial freedom and getting a fresh start, free of debt.