Chapter 13

Chapter 13 bankruptcy is also known as reorganization bankruptcy. It differs from Chapter 7 in that instead of discharging most of your debt, your debt is reorganized into an affordable repayment plan. The duration of this repayment plan lasts anywhere from three to five years, and most outstanding debt at the end of the term will be discharged. This form of protection can be valuable for those whose income makes them ineligible for Chapter 7, but are still struggling with overwhelming debt.

At The Cline Law Group, our Oakland Chapter 13 bankruptcy attorneys have sophisticated experience with bankruptcy filings. For the past 40 years, our law firm has helped people throughout California get the fresh financial start they need.

Pay Down Your Debts Under an Affordable Repayment Plan

Under Chapter 13, you can reorganize the following obligations into an affordable repayment plan, which can help reduce and eventually discharge your debts:

  • Mortgage arrears
  • Non-dischargeable income tax debt
  • Car payment arrears
  • Debts that are not dischargeable under Chapter 7
  • Lien stripping second mortgages

It is possible that not all of your creditors will be paid in full at the end of the repayment period. In fact, some unsecured creditors may receive nothing at all. Nonetheless, the debt can still be discharged at the end of the repayment plan. This form of debt protection provides a number of options for those facing overwhelming financial obligations.

Stopping Foreclosure

Chapter 13 can be a viable solution to stopping home foreclosures. If you have enough disposable income to cover your current mortgage payments along with the payments outlined by your repayment plan, bankruptcy protection can provide you with an additional three to five years to help you catch up on your arrears and save your home.

Other Benefits

Like other forms of bankruptcy, filing for Chapter 13 provides you with the benefit of the automatic stay. This is useful in stopping creditor harassment and other legal actions, such as wage garnishments, lawsuits and bank levies. In addition to debt reorganization, you may also be able to receive other collateral benefits. With proper guidance, you may be able to:

  • Obtain a zero percent interest rate with the IRS or Franchise Tax Board
  • Strip off consensual second mortgages
  • Reduce the amount of your car payments
  • Protect cosigners
  • Provide protection from creditors whose debts would not be eliminated in Chapter 7 (examples: taxes, fraud claims, child and spousal support arrears and student loans)
  • Strip off consensual second or third mortgages or equity loans from real estate where the amount owed on the first mortgage is more than the value of the property

Protecting Small Businesses

Our attorneys have helped many small business owners determine the best course of action based on a number of different factors. We will discuss your goals and how your formation can affect bankruptcy protection. We will look at the size of your business, its debt limitations and whether the business has any assets. Depending on your situation, you may be able to file for Chapter 13 and stay in business.

Call for a Free Consultation With Our Alameda County Debt Repayment Plan Attorneys

To find out if you qualify for an affordable debt repayment plan, speak with us. Contact our Oakland Chapter 13 bankruptcy lawyers online or call 510-255-4632 to schedule a free initial consultation to discuss your situation. The Cline Law Group is diagonally across from the Paramount Theater and located in the same building as the bankruptcy courts for Alameda and Contra Costa Counties.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.