Fremont Bankruptcy Attorney Discusses Chapter 13 Bankruptcy
Fremont Bankruptcy Attorney Discusses Chapter 13 Bankruptcy
A chapter 13 bankruptcy is also called a wage earner’s plan. It enables individuals with regular income to develop a plan to repay all or part of their debts. Under this chapter, debtors propose a repayment plan to make installments to creditors over three to five years. It the debtor’s current monthly income is less than the applicable stated median, the plan will be for three years unless the court approves a longer period “for cause.” However, if the debtor’s current monthly income is greater than the applicable state median, the plan generally must be for five years. In no case may a plan provide for payments over a period longer than five years. During this time, the law forbids creditors from starting or continuing collection efforts.
Any individual, even if self-employed or operating an unincorporated business, is eligible for chapter 13 as long as the individual’s unsecured debts are less than $336,900 and secured debts are less than approximately $1 million. These amounts are adjusted periodically to reflect changes in the consumer price index. A corporation or partnership may not be a chapter 13 debtor.
If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Attorneys can assist you with all aspects of your case. We have attorneys in San Mateo, Monterey, Fremont, Salinas, Sacramento and San Jose.
