What Is A Chapter 13 Bankruptcy Under California State Law?

Chapter 13 bankruptcy is known as a repayment plan bankruptcy, where a portion of all your debts are paid back through a bankruptcy repayment plan. Generally, people in Chapter 13 make too much money to qualify for a Chapter 7 or have too much property that they want to protect.

What Requirements Must Be Met In Order To File For Chapter 13 Bankruptcy In California?

There are numerous factors that consider your income, household expenses, and what your disposable income is. The number one factor is determining that there is sufficient income to fit the plan requirements for a monthly payment.

What Type Of Debt Is Typically Discharged In a Chapter 13 Bankruptcy?

In addition to all those debts dischargeable under Chapter 7 bankruptcy, Chapter 13 bankruptcy can also discharge marital debts, debts incurred to pay a non-dischargeable tax debt, court fees, and debts for loans from retirement plans.

What Debt Is Not Forgiven Under Chapter 13 Bankruptcy?

Debts that are not dischargeable in a Chapter 13 bankruptcy include domestic support obligations, criminal fines or penalties to a government agency, certain taxes, intoxicated driving debts, debts arising from your willful malicious actions, debts or creditors you don’t list, student loans, and fraudulent debt.

What Will I Be Able To Keep After A Chapter 13 Bankruptcy Is Complete?

Generally, unless you choose to surrender the property or it’s a secured obligation that you cannot meet, you can keep all of your properties.

What Are The Major Differences Between A Chapter 7 And Chapter 13 Bankruptcy?

Chapter 7 is known as a liquidation chapter while Chapter 13 provides for a repayment plan. You’d have to speak with an attorney to determine which chapter is best for you. If you qualify for a Chapter 7 and keeping your property is not an issue, a Chapter 7 would be a better serving than a Chapter 13. Chapter 13 provides for various options that fit many different scenarios that a Chapter 7 could not serve.

Is A Chapter 7 Harder Or Easier To File or Qualify For Vs. Chapter 13 Bankruptcy?

Typically, a Chapter 13 is more comprehensive and complex, and has many moving parts and variables in order to get your plan confirmed. A Chapter 7 is easier to complete and obtain a successful discharge than a Chapter 13 is.

For more information on Chapter 13 Bankruptcy In California State, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (866) 651-6118 today.