In a Chapter 13 Bankruptcy Case, the debtor puts forward a plan, following the rules set forth in the Bankruptcy Laws, to repay certain creditors over a period of time, usually from future income. A Chapter 13 Bankruptcy Case may be advantageous in that the debtor is allowed to get caught up on a mortgage or car loans without the threat of foreclosure or repossession, and is allowed to keep exempt and non-exempt property. The Debtor’s Plan is a document outlining to the Bankruptcy Court how the debtor proposes to dispose of the claims of the debtor’s creditors. The debtor’s property is protected from seizure from creditors, including mortgage and other lien holders, as long as the proposed payments are made and necessary insurance coverage remains in place. The plan generally requires monthly payments to the Bankruptcy Trustee over a period of three to five years. If you are employed, arrangements will be made to have these payments made automatically through payroll deductions after the confirmation of your Chapter 13 Bankruptcy Plan.

Learn More About The Chapter 13 Procedure

If you are considering bankruptcy, we encourage you to seek the advice and assistance of an experienced San Francisco Bay Area bankruptcy attorney who practices California bankruptcy law before you decide to file. At The Chernev Firm, we will provide you with a free bankruptcy consultation where you can talk to a bankruptcy lawyer about your options.