Chapter 13 Bankruptcy Rules
A San Jose bankruptcy attorney gives a brief overview of Chapter 13 bankruptcy rules.
Chapter 13 bankruptcy is a way for an individual to reorganize their debt. People within the state of California can claim this type of bankruptcy to restructure their debts and pay off the owed debts within three to five years. An individual can only claim Chapter 13 Bankruptcy if they have a steady form of income that is sufficient to pay off their debts and have money left over for daily living.
Who is Eligible?
Within the state of California, any person is allowed to file Chapter 13 Bankruptcy as long as their unsecured debt, which is debt that isn’t backed by collateral, doesn’t exceed $360,475. Chapter 13 rules require that individual secured debt, which is a loan backed by collateral, doesn’t exceed $1,081,400. This type of bankruptcy is only allowed for individuals. It is not applicable for corporations or partnerships. The Chapter 13 rules require that an individual filing for this type of bankruptcy cannot have any other bankruptcy paperwork filed or dismissed within the last 180 days.
How to File
The Rules of Chapter 13 Bankruptcy required that the individual file a petition within the county that he or she resides. That petition includes a list of assets, a schedule of liabilities, income, and a list of expenditures. It is a requirement to take a credit counseling session. Within this session you will set up a debt repayment plan that must be filed with your petition.
What Happens Next?
Once the petition has been filed and passed, a stop on all collections is put into place. The individual is protected from creditors. This will protect from any garnishment of wages, lawsuits, or collection calls. Once the debtor has filed for the Chapter 13 Bankruptcy, the clerk of court will send out a letter to all creditors informing them of the bankruptcy claim. The debtor, at that time, must work on paying said debts based on the repayment plan.
Please do not hesitate to contact us at our San Jose office by calling 408.279.2288 or 1800.941.6730 for your debt resolution needs. You can receive a free consultation over the phone, or request a free in person appointment at a Sagaria Law office nearest you. Please visit our website at www.sagarialaw.com and fill out a free online evaluation form to determine if you are a qualified candidate for bankruptcy. Sagaria Law's team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff at San Jose can assist you with all aspects of your bankruptcy case. We at Sagaria Law can assist you regarding filing a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, cram down, stopping a foreclosure, wage garnishment, asset protection, discharging a debt, etc. and we are happy to help! Our bankruptcy attorneys located throughout California and Oregon can assist you with your bankruptcy questions.
