What does it mean to file a Chapter 13?
A Sacramento bankruptcy attorney writes about Chapter 13 bankruptcies.
Chapter 13 bankruptcy is a person's legal right to claim in the event of severe financial hardship. An experienced attorney can help advise a person about the technicalities of Chapter 13 and who is eligible. This type of bankruptcy allows a person to keep certain assets, such as a vehicle or home. A person must be able to prove that they have a job with enough income to pay off debts.
A trustee or attorney will determine how much of a person's income will be taken each month to pay off the entire settlement. The payment is generally garnished from a person's wages and sent directly to the trustee. The trustee then distributes the money to all the creditors.
An attorney will work with the creditors to get fees and either all or a portion of the interest removed from the total bill. The payment schedule is set up for a period of three to five years. At the end of the scheduled time frame, the petitioner must have fulfilled their previously agreed upon repayment schedule. During the course of the Chapter 13, creditors are not allowed to contact the person who filed bankruptcy. They are also restricted from taking any further legal action against the bankruptcy petitioner.
If you would like more information on this topic or other bankruptcy topics, please contact our Sacramento office at 916.792.6025 or 1800.941.6730. We at Sagaria Law can connect you with one our our experienced Sacramento bankruptcy attorneys. We have bankruptcy attorneys located throughout California and Oregon to assist you with your bankruptcy questions. If you need assistance regarding a Chapter 7 bankruptcy, a Chapter 11 bankruptcy, a Chapter 13 bankruptcy, bankruptcy litigation, legal debt settlement, mortgage modification, lien stripping, a cram down, stopping a foreclosure or wage garnishment, asset protection, discharging debt, etc. we can help! Please contact us to receive a free consultation or visit our website at www.sagarialaw.com to request an in-person consultation with an experienced bankruptcy attorney. We have an exceptional team of bankruptcy lawyers, bankruptcy client care specialists and bankruptcy staff supporting Sacramento.
