When to File Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a repayment plan. The debtor (person filing bankruptcy) must have enough income to be able to make timely monthly payments.
The most common reason people file for Chapter 13 bankruptcy is because they do not qualify for a Chapter 7 bankruptcy. The stringent “Means Test” required to file for Chapter 7 bankruptcy can be a difficult barrier for many people. In certain situations, even a modest income will disqualify people from filing Chapter 7 bankruptcy.
Contact our office at (661) 485-3917 to speak directly with a Santa Clarita Chapter 13 bankruptcy lawyer who can help determine which form of bankruptcy would be most beneficial.
Chapter 13 bankruptcy can save your home from foreclosure as an alternative to filing for Chapter 7 bankruptcy.
Another reason people choose Chapter 13 bankruptcy is to stop the foreclosure of their house. Chapter 13 bankruptcy can immediately stop a foreclosure from taking place and allow the debtor to repay the deficiency through a Chapter 13 repayment plan.
A Chapter 13 bankruptcy can also stop any other kinds of property repossessions, such as a car, from being repossessed and allow the debtor to retain the property. There are many other reasons to file Chapter 13 bankruptcy. Getting a full bankruptcy consultation with an experienced Santa Clarita Chapter 13 bankruptcy lawyer is essential to exploring your full range of viable options.