Should You File for Chapter 13 Bankruptcy?
There are several benefits to Chapter 13 bankruptcy. Generally, people are able to keep more of their assets under Chapter 13. It is also less harmful to your credit rating than Chapter 7 bankruptcy because your creditors will eventually receive most of the money you owe them.
You must have enough income to repay the majority of your debts to qualify for Chapter 13, however. To find out if Chapter 13 is right for you, contact the Law Offices of Charles X. Delgado. We represent people in California in Chapter 13 and Chapter 7 bankruptcy proceedings. For a free consultation with our experienced attorney, please call 951-795-4058 or contact us online.
Chapter 13 and Your Mortgage
Most people who file Chapter 13 are trying to save their homes. It can be a good option if you are behind on your mortgage payments because it allows for more flexibility than Chapter 7. Your debt, including your mortgage, will be restructured into a repayment plan over three to five years. During this time, your monthly payments will be lowered.
In addition, you may benefit from lien stripping, which is the process of eliminating a second mortgage or home equity loan. After reviewing your finances, we can discuss this option.
All types of bankruptcy provide the benefits of the automatic stay. This stops all collection activities, including foreclosure, during the bankruptcy process.
Chapter 13 will not affect all types of debt, however. You will probably need to repay in full the following obligations:
- Secured debt
- Alimony
- Child support
- Taxes
Please call 951-795-4058 to schedule an appointment with a Temecula Chapter 13 bankruptcy lawyer. Your consultation is free.
