Bankruptcy Chapter 13 | Reorganize your future

Chapter 13 bankruptcies, often called “wage-earners bankruptcy”, provide a person with a way to achieve a new start, but require the filer to pay off some of their outstanding debts. Under the terms of Chapter 13 bankruptcy your unsecured debts are combined into one category and a
Payment plan is developed based on cancellations of your disposable income. You will still have enough of your income to pay your living expenses; such as those expenses will be used to pay off your unsecured creditors over a 3 to 5 year period. Once the agreed payments
Have all been made, you will receive a discharged for your debts that were included in the bankruptcy. Whether or not payments satisfied the outstanding balanced.

Filing a Chapter 13 bankruptcy requires you to submit a detailed budget to the court and the trustee. It may take time for you to compile all the records necessary to file a Chapter 13 case. Your California Bankruptcy Attorney will help you evaluate your financial situation and prepare your case for court.

Typically debts that you owe to the government are not dischargeable; but including them in filing a Chapter 13 bankruptcy plan can have many benefits. Chapter 13-trustee bankruptcy freezes interest and penalties on taxes. This will allow your payments to go directly to the principal, greatly reducing your interest and penalties and interest to your taxes.