{"id":104,"date":"2014-04-22T01:12:31","date_gmt":"2014-04-22T01:12:31","guid":{"rendered":"http:\/\/bankruptcyattorney.vectorscoope.com\/chapter-13-bankruptcy\/"},"modified":"2025-02-02T14:05:15","modified_gmt":"2025-02-02T14:05:15","slug":"chapter-13-bankruptcy","status":"publish","type":"page","link":"https:\/\/www.bankruptcyattorneys.org\/chapter-13-bankruptcy\/","title":{"rendered":"Chapter 13 Bankruptcy Attorney"},"content":{"rendered":"<section class=\"bde-section-104-100 bde-section\">\n  \n  \n\t\n\n\n\n<div class=\"section-container\"><div class=\"bde-div-104-122 bde-div\">\n  \n  \n\t\n\n\n\n<div class=\"bde-breadcrumbs-104-123 bde-breadcrumbs\"><nav aria-label=\"breadcrumbs\" class=\"rank-math-breadcrumb\"><p><span class=\"last\">Home<\/span><\/p><\/nav><\/div>\n<\/div><div class=\"bde-columns-104-104 bde-columns\"><div class=\"bde-column-104-105 bde-column\">\n  \n  \n\t\n\n\n\n<div class=\"bde-div-104-106 bde-div\">\n  \n  \n\t\n\n\n\n<div class=\"bde-button-104-107 bde-button\">\n    \n                        \n                        \n    \n    \n    \n    \n            \n            <button type=\"button\" class=\"button-atom button-atom--custom bde-button__button\"  >\n    \n        <span class=\"button-atom__text\">BANKRUPTCY GUIDE<\/span>\n\n        \n        \n            <\/button>\n    \n\n\n<\/div><div class=\"bde-menu-104-108 bde-menu vertical-menu chapter-guide\">\n\n\n      \n        \n    <nav class=\"breakdance-menu breakdance-menu--collapse    \">\n    <button class=\"breakdance-menu-toggle breakdance-menu-toggle--squeeze\" type=\"button\" aria-label=\"Open Menu\" aria-expanded=\"false\" aria-controls=\"menu-108\">\n                  <span class=\"breakdance-menu-toggle-icon\">\n            <span class=\"breakdance-menu-toggle-lines\"><\/span>\n          <\/span>\n            <\/button>\n    \n  <ul class=\"breakdance-menu-list\" id=\"menu-108\">\n              \n  \n    <li class=\"bde-button-104-109 bde-button 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class=\"button-atom__text\">Key Bankruptcy Terms<\/span>\n\n                            \n        \n                <\/a>\n\n    \n\n\n<\/li><li class=\"bde-button-104-111 bde-button breakdance-menu-item\">\n    \n                        \n                        \n    \n    \n    \n    \n            \n                    \n            \n            \n\n    \n    \n    \n    \n    \n    <a class=\"breakdance-link button-atom button-atom--custom bde-button__button\" href=\"https:\/\/www.bankruptcyattorneys.org\/bankruptcy-basics\/avoid-bankruptcy-mistakes\/\" target=\"_self\" data-type=\"url\"  >\n\n    \n        <span class=\"button-atom__text\">Avoid Bankruptcy Mistakes<\/span>\n\n                            \n        \n                <\/a>\n\n    \n\n\n<\/li><li class=\"bde-button-104-112 bde-button breakdance-menu-item\">\n    \n                        \n                        \n    \n    \n    \n    \n            \n                    \n            \n            \n\n    \n    \n    \n    \n    \n    <a class=\"breakdance-link button-atom button-atom--custom bde-button__button\" href=\"https:\/\/www.bankruptcyattorneys.org\/bankruptcy-basics\/what-does-chapter-7-do\/\" target=\"_self\" data-type=\"url\"  >\n\n    \n        <span class=\"button-atom__text\">What Does Chapter 7 Do?<\/span>\n\n                            \n        \n                <\/a>\n\n    \n\n\n<\/li><li class=\"bde-button-104-113 bde-button breakdance-menu-item\">\n    \n                        \n                        \n    \n    \n    \n    \n            \n                    \n            \n            \n\n    \n    \n    \n    \n    \n    <a class=\"breakdance-link button-atom button-atom--custom bde-button__button\" href=\"https:\/\/www.bankruptcyattorneys.org\/bankruptcy-basics\/bankruptcy-means-test-california\/\" target=\"_self\" data-type=\"url\"  >\n\n    \n        <span class=\"button-atom__text\">The Bankruptcy Means Test California<\/span>\n\n                            \n        \n                <\/a>\n\n    \n\n\n<\/li><li class=\"bde-button-104-114 bde-button breakdance-menu-item\">\n    \n                        \n                        \n    \n    \n    \n    \n            \n                    \n            \n            \n\n    \n    \n    \n    \n    \n    <a class=\"breakdance-link button-atom button-atom--custom bde-button__button\" href=\"https:\/\/www.bankruptcyattorneys.org\/bankruptcy-basics\/liens-in-chapter-7\/\" target=\"_self\" data-type=\"url\"  >\n\n    \n        <span class=\"button-atom__text\">Liens In Chapter 7<\/span>\n\n                            \n        \n                <\/a>\n\n    \n\n\n<\/li><li class=\"bde-button-104-115 bde-button breakdance-menu-item\">\n    \n                        \n                        \n    \n    \n    \n    \n            \n                    \n            \n            \n\n    \n    \n    \n    \n    \n    <a class=\"breakdance-link button-atom button-atom--custom bde-button__button\" href=\"https:\/\/www.bankruptcyattorneys.org\/bankruptcy-basics\/protect-your-exempt-property\/\" target=\"_self\" data-type=\"url\"  >\n\n    \n        <span class=\"button-atom__text\">Protect Your Exempt Property<\/span>\n\n                            \n        \n                <\/a>\n\n    \n\n\n<\/li>\n  <\/ul>\n  <\/nav>\n\n\n<\/div>\n<\/div>\n<\/div><div class=\"bde-column-104-116 bde-column\">\n  \n  \n\t\n\n\n\n<div class=\"bde-div-104-117 bde-div\">\n              \n  \n  \n\t\n\n  <div class=\"section-background-overlay\"><\/div>\n\n\n<h1 class=\"bde-heading-104-118 bde-heading\">\n<span class=\"ch-red-back\">Chapter 13<\/span><br>Bankruptcy attorney\n<\/h1>\n<\/div><div class=\"bde-div-104-119 bde-div\">\n  \n  \n\t\n\n\n\n<div class=\"bde-rich-text-104-120 bde-rich-text breakdance-rich-text-styles\">\n<p>Chapter 13 is ideal for people who want to save their home from foreclosure, lower a car payment, consolidate debts or save other valuable assets when Chapter 7 won\u2019t allow them to accomplish their financial goals.<\/p><p>You may not be sure whether you need a Chapter 13 <u>bankruptcy attorney or a lawyer<\/u> that will handle your Chapter 7 case. That\u2019s okay because at the Bankruptcy Law Center in San Diego, California, we are experts at handling both types of cases for people that need debt relief.<\/p><p>While a Chapter 7 case is usually resolved and completed within a few months, Chapter 13 is designed for people that need to propose a longer term \u201cPlan\u201d to save their property or pay back debts over time\u2014usually 3 to 5 years.<\/p><p>Often referred to as a \u201creorganization\u201d or a \u201cwage earner plan\u201d, a Chapter 13 case allows a debtor to resolve many types of financial problems. For example, Chapter 13 is ideal for people who want to <a target=\"_blank\" rel=\"noopener noreferrer nofollow\" href=\"https:\/\/www.bankruptcyattorneys.org\/save-your-home\/\"><u>save their home from foreclosure<\/u><\/a>, lower a car payment, consolidate debts or save other valuable assets when Chapter 7 won\u2019t allow them to accomplish their financial goals. Chapter 13 is also used by people that don\u2019t qualify for Chapter 7 because of the \u201cMeans Test\u201d (their income is too high).<\/p><p>Sometimes Chapter 13 is used by people that have assets that are \u201cnon-exempt\u201d (can\u2019t be protected with available <u>exemptions)<\/u>, so they propose a Plan that will pay their creditors the same as they would have received in a Chapter 7 case\u2014and thus they get to keep their property. Chapter 13 also is useful to people that have unpaid tax <u>debts, student loans<\/u>, delinquent spousal support or equalization payments from a divorce when these types of debts cannot be discharged or eliminated in Chapter 7.<\/p><h2>Who Can File a Chapter 13 Petition?<\/h2><p>Under the Bankruptcy Code, Chapter 13 is referred to as an \u201cAdjustment Of Debts Of An Individual With Regular Income.\u201d So from the title you can see that a Chapter 13 petition may only be filed by an individual (or a married couple), not a corporation or a partnership.<\/p><p>There are also debt limits (called \u201cjurisdictional limits\u201d) such that if you have more than $1,149,525 in secured debts or more than $383,175 in unsecured, undisputed debts, then you won\u2019t be allowed to file Chapter 13 and confirm a Plan. These jurisdictional limes adjust upwards from time to time, and these dollar amounts are effective on April 1, 2013 and after.<\/p><p>The term \u201csecured debts\u201d refers to mortgages and other liens on your property (or liens on vehicles or other personal property). The \u201cunsecured debts\u201d that count under the above limit are debts where the amounts are not in dispute (like credit card debts and judgments). If your debts exceed these limits, you can still file a <u>Chapter 7 bankruptcy<\/u>, but if you need to reorganize your debts, you will have to file under Chapter 11\u2014a more costly option.<\/p><h2>The Chapter 13 Plan<\/h2><p>The essence of Chapter 13 is the \u201cPlan\u201d that your bankruptcy attorney prepares, in consultation with you, and that is filed with the Bankruptcy Court when you file your petition. Everyone who files Chapter 13 must file a Plan with the Court. The Bankruptcy Court must formally approve your Plan before it is effective, and this Court process is called \u201cconfirmation of the plan.\u201d You should expect that your Plan will require payments over 3 to 5 years depending upon your income and other factors. There are some things that your Plan \u201cmust do\u201d and many other things that your Plan \u201cmay do\u201d under the law.<\/p><p>For example, your Plan must separate creditors into \u201cclasses\u201d (categories) of debt that have similar characteristics. And your Plan must propose to treat each creditor in a category the same as every other creditor in the same category. And if your Plan does not allow for the payment of 100% of the claims against you, then the term of the Plan may be stretched from 3 years to 5 years. Your Plan must also be \u201cfeasible\u201d (the Court must be shown evidence that you will be able to make the payments proposed under your Plan).<\/p><p>But Plans in Chapter 13 may also be used to restructure your debts in some very useful ways. First, it will help you to know that it is common for Chapter 13 Plans in San Diego to propose lower than a 100% pay out to <u>unsecured creditors<\/u>, often because most of the typical debtor\u2019s excess income is used to cure a default on a home mortgage or some other secured debts or \u201cpriority debts\u201d like taxes. So unsecured creditors often receive a very low or even a zero pay out in Chapter 13.<\/p><p>And a Chapter 13 Plan may also be used to \u201cstrip\u201d certain liens. For example you may be able to restructure a secured debt if your property (like a car or investment real estate) is underwater\u2014where you owe more on the debt than the property is worth.<\/p><p>To accomplish this, we \u201csplit\u201d the debt into a \u201csecured portion\u201d (based on the value of the collateral) and an \u201cunsecured portion\u201d (the part that exceeds the collateral value) and we effectively reduce the amount of the lien against your property. When this happens, the \u201cunsecured portion\u201d will be dumped into the category of unsecured claims and will receive pro rata payment with other unsecured creditors (often a very low percentage or even zero).<\/p><h2>Common Issues Solved by a Chapter 13 Plan<\/h2><p>Most debts are \u201cdischarged\u201d when you complete all payments due under your Plan, with the exception of most student loans. Of course your Plan can most likely lower your <u>payments on your student loans<\/u> during the Plan term and any other amounts due are deferred during the term of the Plan. So this is a powerful tool to at least get temporary relief from overwhelming student loan payments.<\/p><p>What if your home is in foreclosure? Your Chapter 13 Plan can be used to save your home. Your Plan can take the past due payments (the defaulted amount) and put them into the Plan to be paid back over the term of the Plan at zero interest. Of course the Chapter 13 case stops the foreclosure at the time you file your petition, and if you stay current on the payments that come due after that, and you make your Plan payments, you will save your property!<\/p><p>If you need your Plan to deal with income tax issues, then you should know that your Plan may completely discharge your tax debts that are more than 3 years old (subject to a few other requirements); and unpaid taxes that are more recent may be repaid with zero interest. This usually results in a much lower payment than you might get through the process of an Offer in Compromise with the IRS.<\/p><p>Chapter 13 may also be used to lower interest and payments on a car loan and may even stretch out the term of your existing automobile loan. In other words, your Plan may be used to make your auto loan more affordable and also allows you to put defaulted payments into the Plan to be cured over time. Another important feature of Chapter 13 related to auto loans is that you may \u201ccram down\u201d or lower the auto loan amount if your car loan is more than 910 days old.<\/p><p>A \u201ccram down\u201d occurs when the loan amount exceeds the value of the car and your Plan proposes to \u201clower\u201d the loan amount to be equal to the value (with any \u201cunsecured portion\u201d dumped into the category of other general unsecured loans). The lowered loan balance then becomes the secured loan that is paid through your Plan.<\/p><p>Filing a Chapter 13 bankruptcy case in San Diego requires special knowledge and expertise. Some of our lawyers have a deep understanding of and experience with Chapter 13 that goes back for decades. We are experts and we will guide you through the Chapter 13 process if that is the best option for your financial situation. Call us at 800-551-7922. We are ready to help you right away!<\/p>\n<\/div>\n<\/div>\n<\/div><\/div><\/div>\n<\/section>","protected":false},"excerpt":{"rendered":"<p>Everything you need to know about San Diego Chapter 13 Bankrputcy. Visit Bankruptcyattorneys.org or call 1-800-551-7922 for a free consultation with a Sand Diego bankruptcy attorney.<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_breakdance_hide_in_design_set":false,"_breakdance_tags":"","two_page_speed":[],"footnotes":""},"class_list":["post-104","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/pages\/104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/comments?post=104"}],"version-history":[{"count":0,"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/pages\/104\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bankruptcyattorneys.org\/wp-json\/wp\/v2\/media?parent=104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}