Chapter 13 Bankruptcy Explained -Bay Area Bankruptcy Lawyer

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San Jose Bankruptcy Attorney 

If you are behind on your mortgage, car payment, property tax, or other secured debt, then a Chapter 13 is probably your best option for relief. A Chapter 13 will stop all debt collection, and it will stop any foreclosure proceedings or repossessions (if you act in time). You can’t wait until your property is already foreclosed on or repossessed. You have to act quickly to stop it before it happens.

A Chapter 13 bankruptcy, often called “debt consolidation” or “reorganization bankruptcy”, is different from Chapter 7 bankruptcy. In a traditional or “straight” Chapter 7 bankruptcy, most of your debts are wiped out; in exchange, you must give up all of your property that is not exempt from seizure. However, in a Chapter 13 bankruptcy, you don't have to give up your property, but you must use your income to pay some or all of what you owe to your creditors over time (between three to five years - depending on the size of your debts and income).

Chapter 13 is a good option for many people because it makes their payments manageable again and it stops the harassing phone calls and letters.  You will be free from creditor harassment and you will have peace of mind.

How a Chapter 13 Case Ends

Once you finish your repayment plan, all of your remaining debts that are eligible for discharge will be wiped out. Before you can receive a discharge, you must show the court that you are current on your child support and/or alimony obligations. You also need to show the court that you have completed a budget counseling course with an approved agency. The entire process takes between 3 to 5 years depending on your income and size of your original debt. After that, you are done, free from debt and ready to make a fresh start.

Could you use a fresh start? San Jose bankruptcy attorney Geoffrey Nwosu is here to help. Call us to schedule your free in-person consultation. Don’t let the bank foreclose on your house, or repossess your car. Stop IRS garnishments. Put peace of mind back in to your life. All of your initial consultations are free of charge and absolutely confidential. Call us today at 408-912-5983.



Law Offices of Geoffrey C. Nwosu

1710 Hamilton Ave.
San Jose, CA 95125

Phone:   
(408) 912-5983
(408) 375-7703
.

 

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