San Mateo Chapter 13 Bankruptcy Attorney
Chapter 13 bankruptcy or reorganization creates a plan for individuals to pay off debts over a designated period of time, while still retaining ownership of his or her property. Most businesses are not eligible to file for Chapter 13 protection. Additionally, if your debt is deemed too high, you may not qualify to for Chapter 13 reorganization.
Our experienced team at the Law Offices of Gary Brenner can discuss with you the advantages and disadvantages of filing a bankruptcy and help you decide if petitioning for Chapter 13 reorganization would be right for you. For more than 3 decades, our skilled San Mateo bankruptcy lawyer has been providing the skilled legal counsel and unwavering representation our clients need and trust.
Chapter 13 Debt Repayment Plans
The primary mechanism of Chapter 13 reorganization is the repayment plan, allowing the petitioner to make monthly payments to lessen their debt obligations. A court-appointed official, called the bankruptcy trustee, will collect the monies and distribute them among your creditors. The trustee also collects a commission which is usually a set percentage of your monthly payments. In order to successfully discharge your debt, your assigned payments must be paid in full and on time each month.
All repayment plans must be approved by the courts before implementation. If the court has reason to believe you have not reported all of your current income, or have overstated your essential living expenses, they may not approve the plan.
Certain debts are given priority and must be paid or continued to be paid each month. These can include:
- Filing fees
- Trustee's commission
- Alimony and child support, including past due payments
- Tax debts
- Wages owed to employees
- Mortgage payments if you plan on retaining ownership of your home
- Other secured debts such as car payments
Unsecured debts, such as credit card debt, utility expenses, and hospital bills may be erased or negotiated to a lessor financial obligation, depending on the amount of income left after priority payments are made. The length of the repayment plan is determined by how your income compares with the median monthly income of the state. Generally, repayment plans take between three to five years to complete.
Qualifying for Chapter 13 Bankruptcy
Before any repayment plan is approved, the court will consider numerous factors to determine if you qualify for Chapter 13 bankruptcy.
Factors in deciding Chapter 13 bankruptcy eligibility include:
- Proving adequate amount of disposable income remains after subtracting secured debt payments and allowable living expenses
- The amount of debt must fall within federal Chapter 13 parameters
- Federal and state tax returns must be current for at least 4 years prior to filing
Insightful & Assertive Counsel for Chapter 13 Debt Reorganization
Chapter 13 bankruptcy may be the effective tool you need to ease the burden of overpowering debt. A constructive payment plan can leave your creditors at bay and alleviate the anxiety of determining which monthly bills to pay within the limits of your income.
If you are considering reorganizing your financial obligations through a Chapter 13 petition, contact the Law Offices of Gary Brenner. Our perceptive San Mateo bankruptcy lawyer can provide the insightful guidance and assertive legal representation you require throughout the entire process. Filing for Chapter 13 immediately implements an automatic stay, which means creditors are barred from further collection attempts the moment you file for bankruptcy. Our firm is deeply committed to protecting your rights and well-being, including taking aggressive action to halt illegal collection tactics.
Call our firm today to schedule a free case consultation ! We are proud to serve clients in Contra Costa, Alameda, Santa Clara counties and areas throughout the San Francisco Bay Area.