Chapter 13 Bankruptcy

Bringing Your Debts Under Control

If you are looking to consolidate your debts into a single, affordable monthly payment, Chapter 13 bankruptcy may be the right option for you. It may even help you avoid serious consequences such as foreclosure on your home and repossession of your car.

I’m experienced California bankruptcy attorney Ivan Trahan. In more than 35 years of practicing bankruptcy law, I have helped many clients obtain debt relief in Chapter 13. Contact me at my offices in Temecula to schedule a free consultation.

Understanding the Benefits of a Supervised Payment Plan

In Chapter 13 bankruptcy, the bankruptcy court reorganizes your debts into a three- to five-year repayment plan. Unsecured debts can be reduced to a small percentage of what you originally owed. Additional benefits of Chapter 13 bankruptcy include:

  • Catching up on mortgages: If you are currently able to make your monthly mortgage payments but cannot catch up with your arrears (missed payments), you can put them on the Chapter 13 payment plan.
  • Repaying non-dischargeable debts: Debts that cannot be discharged in Chapter 7 can be repaid over time without interest on the Chapter 13 plan.
  • Stripping liens: If you owe more on your first mortgage than your property is currently worth, Chapter 13 may be able to convert a second mortgage into an unsecured debt.
  • Cramming down auto loans: If you have made more than 35 payments on your car and still owe more than its current book value, Chapter 13 can reduce what you owe.
  • Protecting co-signers: If someone else has co-signed a debt that you cannot afford to pay, putting that debt on a Chapter 13 plan protects the co-signer from any liability.

The Chapter 13 bankruptcy system is complex, so you should always consult an experienced bankruptcy lawyer to find out whether Chapter 13 is the right option for you.

Assessing Your Eligibility for Chapter 13 Bankruptcy

In order to qualify for Chapter 13 bankruptcy, you need to earn enough income to be able to keep up with the terms of the payment plan. If you later become unable to make your payments, you may have to convert to a Chapter 7 bankruptcy.

I have the experience to assess your financial situation and help you determine whether you can afford to try Chapter 13 bankruptcy. Contact me today to learn more.