Chapter 13 Bankruptcy
A Chapter 13 bankruptcy is sometimes referred to as a debt reorganization bankruptcy. To be eligible for Chapter 13 bankruptcy, you must have a regular source of income.
Whereas a Chapter 7 bankruptcy is designed to completely discharge most forms of consumer debt, a Chapter 13 bankruptcy allows you to repay your debts gradually through a debt repayment plan. The length of the repayment plan is typically three to five years.
A creditor with a claim preceding the bankruptcy petition cannot do anything to enforce the claim or collect the debt other than accepting payment under the Chapter 13 plan. All other debt collection activities, such as wage garnishment, are prohibited by bankruptcy's automatic stay.
Call 916-723-3606 to schedule a free consultation with Sacramento bankruptcy attorney Gary D. Greule.
Why Do People Choose Chapter 13 Bankruptcy?
Chapter 7 is the most common form of consumer bankruptcy. Since it discharges most debts completely, it is a preferred form of debt relief for many people.
If your income is too high to qualify you for Chapter 7 bankruptcy relief, if you have assets you may lose in a Chapter 7, if a particular non-dischargeable or secured debt requires you to make payments over time, or other important factors exist, a Chapter 13 bankruptcy might be right for you.
Schedule a Free Consultation to Learn More
If you are thinking about bankruptcy and wish to speak with a lawyer who can help explain your choices, contact the Law Office of Gary D. Greule in Citrus Heights, California. We serve clients throughout the Greater Sacramento area. For help, call 916-723-3606 or contact us by e-mail.
