Chapter 13 vs. Chapter 11 Bankruptcy Filings
A San Jose Bankruptcy Attorney notes the difference...
San Jose residents who are considering filing for bankruptcy should know from a San Jose bankruptcy attorney that Chapter 13 offers some unique advantages to Chapter 7 liquidation. Specifically, in a Chapter 13 bankruptcy debtors may strip off their second mortgage under certain conditions, and debtors may also cram down their auto loan! It’s the cram down that will be the topic of conversation today.
No doubt there are many San Jose consumers in debt who are hesitant to file for bankruptcy for fear of losing their homes and cars. Don’t worry, San Jose, Chapter 13 really amounts to a repayment plan. The Chapter 13 plan itself can vary depending upon a debtor’s disposable monthly income or DMI. Once a plan is approved a debtor will pay of his or her debt over a period of time (usually five years) interest free; but what about the cram down?
Ok San Jose, here goes. If a debtor has owned their car for 910 days before filing chapter 13 and the vehicle is worth less than the amount owed, a debtor has the option to “cram down” the amount repaid through the repayment plan to the vehicle’s value rather than the amount owed. So if you’re an San Jose resident considering filing for bankruptcy and are upside down on your auto loan, Chapter 13 may provide you with some advantages. San Jose and South Bay Area residents who want more information should seek out an experienced bankruptcy attorney.
If you have a question regarding Bankruptcy in San Jose please contact us at 408.279.2288 or visit www.bkanswers.com and we can connect you with one of our experienced San Jose Bankruptcy Attorneys. After you have spoken with one of our San Jose bankruptcy attorneys we can schedule you a free face to face appointment in our office location nearest you. Our team of San Jose Bankruptcy Lawyers can assist you with all aspects of your case. If you have questions about filing a chapter 7 bankruptcy, a chapter 11 bankruptcy, a chapter 13 bankruptcy, lien stripping, cram down, stopping a foreclosure or wage garnishment, discharging debt, etc. we can help! We have bankruptcy attorneys located throughout California who can assist your financial needs. Please feel free to complete our free bankruptcy evaluation and we can quickly determine if you are a qualified candidate for bankruptcy.
