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Chapter 13 Bankruptcy : Personal Service Law Firm, Bankruptcy, Family Law, Criminal Law, Personal Injury

Chapter 13 Bankruptcy

Chapter 13 Debt Consolidation – Wage Earner Plan

Unlike a Chapter 7 Bankruptcy that can liquidate nonexempt property and discharge any remaining debt, a Chapter 13 Bankruptcy, or Wage Earner’s Plan, permits you to keep most or all of your property and consolidates your debt, if you agree to repay your creditors to the extent you can afford to over the course of three to five years.  The Spear Law Firm attorneys can help you decide if debt consolidation is right for you.

If you have a fairly steady income, Chapter 13 bankruptcy may provide a means of paying off some or all of your debt over a predetermined period of three to five years, after which the remaining debt may be discharged.  In essence, your debt will be consolidated into a manageable repayment plan, paid over the designated period of time, all the while you remain under the protection of the Court as it stays any action against you from creditors included in the plan.

By completing the payment plan as agreed, you are allowed to maintain your real and personal property because your debt was not discharged, but restructured into a new payment plan that was ultimately satisfied.

Debt Ceiling Restrictions

There are few eligibility restrictions that may prevent a Chapter 13 filing.  The most common restrictions are the limitations on the amount of secured and unsecured debt.   Chapter 13 does not allow the total amount of your unsecured debt to exceed $336,000 and your secured debt to exceed $1,010,650.

Lien Avoidance/Lien Stripping

The terms “lien avoidance,” “lien stripping” and “stripping down,” refer to the Chapter 13 procedure of removing or avoiding a junior lien or mortgage that entirely exceeds the value of the underlying property.  If a property is secured by two or more liens and the senior lien, or any lien with priority, entirely exceeds the value of the collateral, any claims from junior liens or mortgages can be bifurcated from the secured claims under 11 U.S.C.A. § 506(a) and declared as unsecured and voided under California Central District Chapter 13 Bankruptcy Code.

To learn more call us today 

The Spear Law Firm takes great care to offer personal service to all of their clients. The attorneys and the staff will listen to you, take the time to fully understand your situation and answer any of your questions.

At the Spear Law Firm, our goal is to ensure a fair and reasonable outcome for you. We have practiced Bankruptcy Law for over 15 years, and bring vast experience and knowledge of Bankruptcy Law matters to effectively represent you.  Contact us today for skilled and compassionate bankruptcy law representation.

For more information, or to discuss your specific case, contact the Spear Law Firm of the San Fernando Valley in Tarzana today.  For a free initial consultation, call (877) 327-5291 / 8-SPEARLAW-1.