Understanding Chapter 13 Bankruptcy - Fresno Bankruptcy

Just as in other types of bankruptcy, there are certain requirements you must meet in order to be able to file for Chapter 13 bankruptcy. Because Chapter 13 bankruptcy requires a long-term repayment plan, you must have a steady source of income, either through employment or some other means, in order to be able to file. Additionally, there are limits to the amount of money you owe. Generally speaking, you cannot owe more than $1,010,630 in secured debt - debts such as cars, your mortgage, etc. And you cannot owe more than $336,900 in unsecured debt - these are debts such as your credit cards and personal loans in which there is no collateral.

There are also rules regarding the repayment of your debts, based upon the type of debt that you owe. You are expected to devote all of your discretionary income - that is, your income that is left over after necessary expenses are paid - to repaying your creditors. Priority debts must be repaid over the course of the 3-5 year repayment plan, but non-secured debts generally do not have to be. As a rule, you must repay your creditors at least as much as they would receive under a Chapter 7 bankruptcy. This means that if creditors who hold non-priority, unsecured debt would only receive 10% of what you owe under a Chapter 7 bankruptcy, then this is the minimum you must repay them according to the repayment plan in Chapter 13 bankruptcy.

Filing for Chapter 13 bankruptcy in Fresno County can provide additional benefits such as helping you to retain your home or car if you've gotten behind on the payments. Because you can spread out missed payments over a 3-5 year period, as long as you can afford your current mortgage and/or car payments, you can keep your property without having to go through extensive negotiations at the bank. And because the terms of a Chapter 13 plan are binding on your creditors, if your auto loan is restructured during the bankruptcy process, you can take advantage of substantial savings, while still retaining ownership of your vehicle.

Because Chapter 13 bankruptcy can be complex, it is important to get reliable legal advice for your particular situation. Our premier Fresno County Bankruptcy Law firm has years of experience when it comes to helping individuals who need assistance with bankruptcy issues of all types. We offer a free, no risk, initial case evaluation for people who need help understanding Chapter 13 bankruptcy in Fresno County. Get the advice you need from an expert in Fresno County Bankruptcy Law - someone you can trust to provide unbiased, trustworthy information about bankruptcy laws and requirements. Contact our office today and schedule your consultation as soon as possible so that you can take advantage of the financial freedom that Chapter 13 bankruptcy can provide.