Chapter 13 Bankruptcy

Helping You Reorganize Your Debts for a Better Future

Chapter 13 bankruptcy is often referred to as a reorganization bankruptcy.  It is designed for individuals who want to protect their home, strip off a second mortgage, or whose income disqualifies them from filing for Chapter 7 bankruptcy protection. In some cases, a debtor may want to file Chapter 13 bankruptcy in order to protect their those assets that cannot be fully exempted.  If you do not qualify for Chapter 7 or have some other reason why you want to consider a Chapter 13, call De Novo Law Firm today at (951) 801-5570.

The process for Chapter 13 is very similar to a Chapter 7 although it requires a few extra steps. First, a debtor must propose a Chapter 13 Plan and the plan must be conformed by the judge. This plan takes the debtors monthly budget for necessary expenses and distributes any remaining funds to creditors. The distribution to creditors is determined by priority in the plan. Secured creditor, unsecured priority creditors, and unsecured creditors are some of the classes provided for in the plan. Depending on income and other factors, the plan payments will last for 36-60 months. Call us today  at (951) 801-5570 to determine what your plan would look like and whether this is a good option for you.