Chapter 13 Bankruptcy, also known as a reorganization, is a Chapter of Bankruptcy wherein the Debtor (i.e. person filing bankruptcy) enters into a repayment plan through the Court for 36-60 months to pay back certain debts. The debtor will make monthly payments to their particular Bankruptcy Trustee and the Trustee will in-turn pay the creditors what the plan instructs them to pay.
Drafting the Chapter 13 Plan is a very tricky process and our skilled Bankruptcy Attorney has mastered the process. Once the plan is filed, the Court must confirm the plan in order for the Debtor’s case to move forward. When looking at whether the plan will be confirmed, the Court looks directly to 11 U.S.C. § 1325 This code lays out each requirement that must be met in order for the Debtor’s plan to be confirmed. If the Debtor is unable to confirm a plan, their case will soon be dismissed.
There are several reasons one might consider filing for Bankruptcy relief under Chapter 13 of the Bankruptcy code. Some of these reasons are:
- Income is too high to qualify for a Chapter 7
- Too much equity in a home
- Own a home with two mortgages and the home is underwater
- Has a large tax obligation
- Own a business and does not want to risk the business being shut down
Call our office at 916-800-7690 and set up your FREE consultation with Chapter 13 Bankruptcy Attorney Pauldeep Bains today!