Considering Your Options: Chapter 13 Bankruptcy
In simplest terms, filing for bankruptcy under Chapter 13 has the effect of giving you some much-needed financial breathing room while putting a workable plan in place that allows you to repay some or all of the debt you owe over a period of three to five years. At the same time, a Chapter 13 bankruptcy is more complex than a Chapter 7 and it requires more work from both you and your attorney.
At the Law Offices of Mark Ankcorn, we know how to make the complex Chapter 13 process work in ways that are custom-tailored to the needs of our clients. Our principal office is located in downtown San Diego but our practice extends to clients in places ranging from Chula Vista and Eastlake in the south to Escondido and Temecula in the north.
If you are in or near any of these areas and would like to learn more about bankruptcy options like Chapter 13 — we encourage you to call or contact us for a free initial consultation today.
Chapter 13 Bankruptcy Facts
Less than 15% of consumer bankruptcy filings in San Diego are done under Chapter 13. Most often, it is used by people who have a regular source of income and who for various reasons, cannot or do not want to use Chapter 7. Essentially, Chapter 13 is used by people to reorganize debt while under the protection of the Bankruptcy Court. And unlike Chapter 7, it does not involve the forced sale of your property by a bankruptcy trustee.
Other facts about Chapter 13 bankruptcy include:
- Chapter 13 is also used by individuals who do not have mortgage problems, but who do have credit card, loan, medical bill or similar problems. In such cases, a Chapter 13 Plan is often proposed with monthly payments over 3 or 5 years sufficient to pay a portion of the debt that you owe to these unsecured creditors.
- Chapter 13 is often used is stop a mortgage foreclosure and propose a plan to catch mortgage payments up-to-date. During the first phase of a Chapter 13 plan (typically the first 4 years), the mortgage is caught up-to-date. During the second phase of the plan (typically another year), you pay your mortgage payments directly to the mortgage company and continue with monthly payments to the Chapter 13 Trustee in an amount sufficient to pay a dividend to your unsecured creditors.
- The payments under a Chapter 13 plan are made to the court-appointed Chapter 13 Trustee — not directly to your creditors.
- A certain amount of disposable income and a reasonable standard of living are factored into the three- or five-year reorganization plan.
- It is often thought that if you do not qualify for Chapter 7, you will automatically qualify for Chapter 13. This is not always true. If this is the case for you, we will explain the non-bankruptcy alternatives and help you obtain the debt relief you need through those other means.
Local: (619) 573-4192 / Toll Free: (866) 603-4856
For a free initial consultation with a lawyer — call our law office directly at either of the two phone numbers listed above. You can also contact us by e-mail and someone from our office will get in touch with you shortly.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
Serving Chula Vista, Escondido, and
Other San Diego Area Communities
