California Bankruptcy Lawyer Blog

San Diego Bankruptcy Attorney comments on the dramatic rise in bankruptcy filings in Southern California.

The prosperous Southern California region has not escaped the wrath of the recession that began in 2007. Recent data from California’s Southern District Bankruptcy Court, which covers San Diego and Imperial counties shows that bankruptcies were up 63 percent for the year ending July 31 over the previous year’s totals.

The types of bankruptcies are different than those filed for in years past. In the past most of the bankruptcy filings were from people with large credit card debt, medical bills or single mothers who were not receiving spousal or child support. The current filers are often individuals who own multiple homes and have seen their property values drop dramatically. The combination of declining incomes and falling property values has left many individuals “upside down” where they owe more than they have or can repay.

The loss of property values has complicated the bankruptcy process for many filers. With real estate values below the loan amounts, the properties cannot be easily sold to pay off the debts. This leaves many filers in the situation of not having a clearly-defined path at the outset of the bankruptcy filing process. Their bankruptcy attorneys have to do a careful analysis of their situation to determine whether a Chapter 7, Chapter 11 or Chapter 13 bankruptcy best fits their situation.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Francisco Bankruptcy Attorney explains how small business owners may get hit with one-two bankruptcy punch.

Small business owners who may be considering filing for a business bankruptcy need to be aware that the business bankruptcy filing may force them into a personal bankruptcy filing, depending on how their business is structured.

Even if your business is incorporated as an LLC, SubChapter S or SubChapter C corporation, you may still be personally liable for the debts of the company. Many company credit cards and lines of credit for small businesses use the owner’s guarantee of the debt as a means of extending credit. So, if you have taken out a line of credit and your business files for bankruptcy, the bank can force you to repay the debts of the business, even though the business is a separate corporation or legal entity.

If you business files for a Chapter 11 reorganization, the banks may be more lenient than if you file for a Chapter 7 liquidation. In a liquidation, the assets of the business are sold and the proceeds are used to pay the creditors. If your assets do not pay off your creditors, which is typically the case, the creditors can pursue the debts that have been personally guaranteed by the owner. The addition of those debts, plus the loss of income from the business, may force the owner of the business into a Chapter 7 or Chapter 13 filing of their own.

If at all possible, avoid personally guaranteeing any business debts. This keeps the business debts out of your personal finances. If you have already signed for these debts, consult a bankruptcy attorney to find out what steps you can take to avoid a personal bankruptcy if your business has to file for bankruptcy protection. It may not be too late, and your bankruptcy attorney can guide you through the process.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney explains how you can keep your home during a bankruptcy.

Filing for bankruptcy no longer automatically means you will lose your home. It is possible to keep your home in a Chapter 7 bankruptcy filing, but far more likely in a Chapter 13 bankruptcy filing.

A Chapter 7 bankruptcy filing is a liquidation where all of your assets are sold and the proceeds used to pay off creditors. If you have equity in your home, it is likely that the mortgage holder will sell the property and use the proceeds to pay off creditors. However, if you owe more than the current value of the home and are current in your payments, it is possible that the mortgage holder will allow you to keep your home as long as you continue to remain current in your payments.

In a Chapter 13 bankruptcy filing, you are asking the court to allow you to make payments to the court, which takes your payments and disburses them to creditors. Chapter 13 is essentially an installment plan that will allow you to satisfy all of your debts within a three to five year time frame. If you stay current with your payments, it is possible for you to keep your home during a Chapter 13 bankruptcy. However, if you fall behind, you can trigger a reopening of your bankruptcy which would cancel the terms of your Chapter 13 bankruptcy filing.

One other note: Mortgage companies are far more amenable to a loan modification request after a bankruptcy filing than they are prior to the filing. It may be possible to keep your home and rework the terms of the loan with your lender. Your bankruptcy attorney can guide you through this process.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Oakland Bankruptcy Attorney comments on the dramatic rise in Chapter 11 bankruptcy filings by wealthy individuals
Wealthy individuals have not been spared the wrath of this current recession. According to Bloomberg News

Service, Chapter 11 bankruptcy filings by wealthy individuals rose 73 percent over 2008 filings in the second quarter. Many experts are blaming the dismal real estate market for the rise in Chapter 11 filings.

The real estate downturn has caught many wealthy individuals in the “perfect storm” as their investment portfolios and property values declined dramatically as their income was reduced. This left many of them unable to service the highly-leveraged debt they incurred on the properties that are now upside-down in value.

The 2005 bankruptcy reform laws passed by Congress included a means test for bankruptcy filing. Individuals and couples with more than $1,010,650 in secured debt and $336,900 in unsecured debt are prohibited from filing a Chapter 7 liquidation or Chapter 13 bankruptcy reorganization. Instead, they are required to file a Chapter 11 bankruptcy reorganization plan and the difference is dramatic.

A typical Chapter 7 or Chapter 13 bankruptcy filing can cost between $1,500 - $6,000 and often includes only one hearing. A Chapter 11 filing can easily cost $15,000 - $30,000 and included multiple contested hearings as creditors fight over payouts from the assets. A Chapter 7 or Chapter 13 bankruptcy filing is often completed in just a few months, while a Chapter 11 filing may drag on for years as creditors wrangle for control of assets.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Francisco Bankruptcy Attorney cautions against choosing a bankruptcy attorney on price

Choosing an attorney if you are considering a Chapter 7, Chapter 11 or Chapter 13 bankruptcy is one of the most important financial decisions you will make. A good bankruptcy attorney will guide you through the process to the best possible outcome for you. A less-qualified attorney may leave you vulnerable to future litigation and collection efforts, or, in the worst-case scenario, will cause your bankruptcy filing to be dismissed and you will still be responsible to all of your creditors.

One good place to start in searching for an experienced bankruptcy attorney is to contact your local or state bar association. They will be able to tell you who the bankruptcy specialists in your area are. During this recession many general practice attorneys are touting themselves as bankruptcy attorneys because “that is where the money is.” And they tend to offer low prices to attract prospective clients. You want to ensure that your attorney is a bankruptcy specialist and has years of experience with Chapter 7, Chapter 11 and Chapter 13 bankruptcy filings, and has courtroom experience.

You should also talk with friends or acquaintances who can provide names of bankruptcy attorneys they have used. Find out how the attorney handled their case. Did they receive personal attention, or did they just fill out forms? Was the bankruptcy filing tailored to their situation or was it a cookie-cutter approach? That is the kind of information that can help you narrow your list.

Finally, interview the attorney yourself. Many bankruptcy attorneys offer a free initial consultation. Take the time to ask how they handle their cases. Find out if you will be dealing with them or an associate in the firm. You want to be comfortable with the person who will be handling your case. Finally, ask for a contract that lists what the attorney will be doing on your behalf. You want to ensure that the attorney specifies what he or she will be charging you in the way of fees and how those fees will be paid by you. In most cases, attorney fees that are given to you by your attorney will have to be approved through the bankruptcy court, so you will not have to pay your attorney fees up front.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Diego Bankruptcy Attorney lists some celebrity bankruptcy filings throughout history

Bankruptcy isn’t a career-killer or life-stopping moment. Throughout our history many famous leaders and celebrities have filed for bankruptcy protection and gone on to make their careers or fortune afterward. If you are considering filing for a chapter 7 bankruptcy, chapter 11 bankruptcy or chapter 13 bankruptcy, you are not alone!

Some of them include:

Abraham Lincoln
16th President of the United States
Kim Basinger
Oscar - winning actress (1993)
Toni Braxton
rock star (1998)
Buffalo Bill
Wild West showman
Nell Carter
Actor; Housekeeper on Gimme a Break
Natalie Cole
singer
Francis Ford Coppola
Oscar - winning film writer - director - producer (1999)
Cathy Lee Crosby
Actress - American Author (1992)
Walt Disney
Oscar - winning film producer, animation & theme park pioneer (1923)
Henry Dunant
Red Cross founder
William C. Durant
Founder of General Motor
Mick Fleetwood
rock star, lead member of "Fleetwood Mac" (1984)
Henry Ford
Automobile manufacturer
William Fox
Co-Founder of 20th Century Fox Film Corporation (1936)
Zsa Zsa Gabor
Cop-slapping Gabor sister
Marvin Gaye
singer (1970s)
Ulysses S. Grant
18th US President; Civil War general, best-selling American Author, face is pictured on the US fifty dollar bill ( 1884 after leaving office)

If you find yourself on the wrong side of the economic downturn, and are being harassed by creditors, bankruptcy may be the breathing space you need. Many people have filed for bankruptcy protection and gone on to great success afterward.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Oakland Bankruptcy Attorney notes that bankruptcy is affecting the wealthy during this recession.

According to a recent report from Bloomberg, bankruptcy filings among the wealthy in the second quarter rose 73 percent from one year ago. It seems that the recession is taking a toll among the wealthy, as well as middle class and working-class families.

Because many of the wealthy individuals have debts that exceed the Chapter 7 and Chapter 13 limits, they are using the more expensive and more time-consuming Chapter 11 bankruptcy filing. Chapter 11 is a reorganization process that requires negotiation with creditors, which can lengthen the process and drive up the cost for the debtor.

Much of the increase can be attributed to the highly-leveraged real estate that many wealthy individuals own. With the collapse of real estate prices, they have seen their assets drop and loans are being called in by lenders. Without collateral to back the loans, they are seeking loan modification or bankruptcy protection.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney helps you decide if bankruptcy is the right option for you.

Are creditors calling and harassing you day and night?
Are you at risk of losing your home to foreclosure?
Are you facing a wage garnishment?
Have you recently lost your job or had a reduction in income?

If you answered yes to any of the above questions then bankruptcy may be the right solution for you. When bankruptcy was first created, it was meant to help the average person who may have gotten hurt or hit with some hard times. During this economic downturn, many individuals and families have been hit with the one-two punch of declining income and rapidly depreciating property values, which leaves them with fewer resources to borrow from to weather the economic storm.

The average person filing for bankruptcy now includes investors who have one or two houses that no longer have any value and want to get rid of the properties or the family who brought a house at a high value that needs to rework their loans. It also includes the unlucky ones who have always made their payments on time but have gotten hurt or are unemployed through no fault of their own and need a break from their debt. Today, bankruptcy is also the answer to the good consumers who have suddenly found their credit card accounts closed, and their interest raised for no apparent reason because the law is on their side, if they know where to look.

Today’s bankruptcy is more than the government’s way to help the person who has hit some financial troubles. If you are overwhelmed with bills or are constantly harassed by creditors calling day and night, then bankruptcy may be right for you. The bankruptcy laws don’t just wipe away debt; they also institute automatic restraining orders which forbid the creditor from calling you or risk having to pay you for the violation. If you have fallen behind on house payments and are in risk of foreclosure, then bankruptcy may be right for you. The bankruptcy laws may be able to adjust your loans by stripping away liens placed by other parties or give the debtor some time to make his payments. If you have lost your job or health has kept you from work, then bankruptcy may be right for you because the bankruptcy court can give you the fresh start you need. If your house has fallen in value to the point where it may not be worth keeping, then bankruptcy may be right for you because the bankruptcy court will allow you to walk away from the properties so that you can start over.

The best way to decide if bankruptcy is right for you is to consult an experienced bankruptcy attorney. A debtor should gather all the pros and cons for their specific financial situation before deciding. It is possible that only one spouse has to file bankruptcy to allow the other spouse the ability to maintain good credit. It is also possible that bankruptcy is not helpful because the type of debts, such as student loans, cannot be discharged. Finally, many families may be qualified for different types of bankruptcies, depending on what their goals are.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney explains what happens after you file for bankruptcy protection.

Many people fear that they will be shackled by a bankruptcy for many years in the future and will be unable to purchase a home or a car for some time. The reality is that although a bankruptcy legally can remain on your credit report for up to 10 years, some credit reporting bureaus may drop it sooner. The effect of bankruptcy on your credit score can start to diminish much earlier if you adopt responsible credit habits such as paying your bills on time, using only a small portion of your available credit and not applying for too much credit at once. With time you can rebuild your credit history after bankruptcy by getting smaller amounts of credit and responsibly paying your bills on time.

One way to re-establish your credit after bankruptcy is to utilize secured loans, such as secured credit cards, auto loans, and even a mortgage. You may pay a very high interest rate at first, but as time passes, you will be able to trade a vehicle in or sell it and buy a new car with a lower rate. For mortgages, lenders typically look at a period over which payments have been made, so if you have established credit and are paying on it regularly, you may qualify for a mortgage. The longer you wait after a bankruptcy, the better your rates and options will be.

Rebuilding your credit rating is a simple process. Some steps include:

• Continue to pay installment loans.
• Get a secured credit card. Use it lightly and wisely.
• Check your credit report regularly to make sure that accounts discharged in bankruptcy are listed as such and that there are no new delinquent or fraudulent accounts.
• Develop good bill paying and credit habits by staying within your income and paying your bills on time.
• Have a mix of types of credit – installment, secured and unsecured.
  

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Salinas Bankruptcy Attorney discusses link between health care costs and rise in bankruptcy filings.

Two recent reports confirm that health care costs are a significant contributor to the rise in consumer bankruptcy filings. The reports note that health care costs are a factor in more than 60% of bankruptcy filings in the United States. In more than 25% of the cases, the medical costs were the primary cause of the bankruptcy filing.

The rise in healthcare costs, coupled with the job losses across the nation and the loss of healthcare coverage that accompanies unemployment have driven many families who have chronic illnesses or sudden medical emergencies to seek bankruptcy protection. This issue has been frequently discussed as the nation looks at the possibility of reforming the health care system.

Having adequate health insurance is a vital protection of your family’s financial situation. If you do not have insurance, contact your state insurance commissioner to review the options available to you from public and private insurers.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Oakland Bankruptcy Attorney discusses the rise in August bankruptcy filings.

According to a report from the American Bankruptcy Institute, the number of bankruptcy filings in August rose 24% over the August 2008 numbers. The number of bankruptcies has declined 5% from the July, 2009 levels, but is still higher than last year.

Bankruptcy is a lagging indicator of economic activity. It generally takes several months after someone loses their job or is hit by unexpected medical bills before they consider filing for bankruptcy protection. For many people, unemployment is a stop-gap measure that delays the filing if they cannot find another job.

What is exacerbating the rise in bankruptcies is the dramatic decline in home values. In previous recessions, home equity was used to tide people over until the economy and their jobs recovered. With declining home values, that is not an option for many people.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

Fremont Bankruptcy Attorney explains the Chapter 11 bankruptcy process.

A Chapter 11 bankruptcy filing is similar to a Chapter 13 reorganization filing, except Chapter 11 is limited to businesses and individuals whose assets or unsecured debts exceed the Chapter 13 limits. Though both Chapter 11 and Chapter 13 bankruptcies have the goal of reorganization, for the debtor, the process can be very different.

In a Chapter 11 bankruptcy is difficult to predict precisely how long a it may take to get to completion because it is so dependent on the reorganization plan. The reorganization plan needs to be accepted by all the creditors as well as the trustee before it gets implemented. Depending the size and the complexity of the bankruptcy and the assets involved, debtors may come out of the bankruptcy within a few months, or it may take several years. The reason for the time discrepancies is because, at first, debtors have the exclusive right of proposing a plan within 120 days of the filing. After a certain amount of time, the creditors are then allowed to propose their plans for reorganization. The reorganization plan, whatever is chosen, needs to be confirmed by the bankruptcy court. The creditors then need to vote and approve the plan. If the plan is confirmed, then the debtor follows the repayment plan until the debt is completely paid. If the plan is not confirmed then the court looks to other options for the debtor. Some options include converting the Chapter 11 into a Chapter 7 and liquidating the assets. Or in some cases, dismissing the case, and returning the debtor back to whatever their status was before the bankruptcy. Therefore, the timeline is definitely different with each case depending on the assets involved and the difficulty.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.

San Jose Bankruptcy Attorney explains the Chapter 13 bankruptcy process.

There are two principal types of bankruptcy filings for individuals, Chapter 7, which is a liquidation process, and Chapter 13, a reorganization process. This article will explain the Chapter 13 process.

Chapter 13 bankruptcy is a reorganization plan that allows a debtor to repay his or her debts back over a period of time, typically three to five years. This type of bankruptcy filing is most commonly used by a debtor who does not have the current income to repay all of his or her debts in full. The debtor must present a plan to the court that shows that he or she has the income to repay the debts with the extended time period. Under a Chapter 13 bankruptcy filing, the following debts must be paid in full:

• Wages you owe employers
• Any taxes that you owe
• Any domestic support obligations
• Mortgage payments
• Car payments
  

As with a Chapter 7 bankruptcy filing, the debtor must take a credit counseling course and present proof of completion of that course must be presented to the court. The filing of the petition under Chapter 13 "automatically stays" most collection actions against the debtor, or the debtor's property, while a repayment plan is worked out under the supervision of the courts. As long as the "stay" is in effect, creditors generally cannot initiate or continue any lawsuits, make wage garnishments, or even make telephone calls demanding payments.

For example, by virtue of the automatic stay, an individual debtor faced with a threatened foreclosure of the mort1gage on his or her principal residence can prevent an immediate foreclosure by filing a Chapter 13 petition with the bankruptcy court. Chapter 13 then gives the debtor a right to cure defaults on long-term home mortgage debts by bringing the payments current over a reasonable period of time.

If you have a question regarding Bankruptcy please contact us at 1-800-941-6730 or visit www.bkanswers.com and we can connect you with one of our experienced Bankruptcy Attorneys. After you have spoken with one of our bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, a stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.