Consumer Chapter 13
Chapter 13 Bankruptcy LawyerIf your income is too high to qualify you for Chapter 7 bankruptcy relief or if particular nondischargeable or secured debts require you to make payments over time, Chapter 13 bankruptcy might be right for you. For more information and a fee consultation, contact Sacramento Chapter 13 bankruptcy attorney Gary Greule. The main difference between Chapter 7 bankruptcy and Chapter 13 bankruptcy is that under Chapter 13, the debtor obtains discharge by making payments to creditors pursuant to a repayment plan. Chapter 13 is sometimes called a wage-earner's plan, wage-earner plan, or an income based plan. The debt repayment period is usually three to five years. A creditor with a claim preceding the bankruptcy petition can not 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. Since the Bankruptcy Code amendments that went into effect in 2005, the choice between Chapter 7 bankruptcy and Chapter 13 bankruptcy may be determined by application of the "means test," but this is usually a decision based on feasibility of a plan and the best approach to resolving the overall debt problems. A debtor is eligible for Chapter 7 debt relief under the new bankruptcy laws if the debtor's household income is below the median income of households of the same size. Even if your annual income is more than the applicable median income, you may still qualify for relief under Chapter 7. We'll work closely with you to identify any factors which may demonstrate your eligibility for Chapter 7 bankruptcy. Since the means test to qualify for Chapter 7 came into effect, we've been able to file Chapter 7 bankruptcy cases for many clients who initially thought they were eligible only for Chapter 13 bankruptcy. Sometimes Chapter 13 bankruptcy is the best approach, regardless of the debtor's income. For example, where a substantial portion of your overall indebtedness is not dischargeable in bankruptcy, Chapter 13 can give you the extra time necessary to pay off nondischargeable debts. In many cases involving tax debts or certain other liabilities, Chapter 13 bankruptcy makes it possible to eliminate many of the penalties and interest charges. At the Law Office of Gary D. Greule in Citrus Heights, California, we also have long experience with small business bankruptcy under Chapter 13. Our resourceful approach to making Chapter 13 bankruptcy work for businesses has been a hallmark of our practice for over 20 years. Once in a while we see a prospective Chapter 13 debtor whose indebtedness exceeds the debt limits for a Chapter 13 case. If your combined secured debt or your unsecured debt exceeds the limits for Chapter 13, we can help you file a Chapter 11 consumer debt case. For a free consultation about your specific situation, contact Sacramento Chapter 13 bankruptcy attorney Gary Greule. We are a debt relief agency. We help people file for relief under the United States Bankruptcy Code. |
