Bankruptcy Attorney

Chapter 13 Bankruptcy

Call West Coast BK Today

Free No Obligation Consultation










Brief Description of Your Circumstances


The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

A Chapter 13 bankruptcy is the reorganization of your debts with the approval of the bankruptcy court. When your Chapter 13 bankruptcy petition is filed with the bankruptcy court, an automatic stay will go in effect and stop all collection or foreclosure proceedings. A Chapter 13 Plan is filed with the bankruptcy court that is confirmed or approved. See Chapter 13 Timeline below.

Chapter 13 Bankruptcy Timeline

Why file a Chapter 13 Bankruptcy?

Save Your Home From Foreclosure
Get Rid of a Second and Third Mortgage or Line of Credit
Reduce or Cram Down a Vehicle Loan
Your Income is Higher than the Median Income for your County
You are Not Eligible to file a Chapter 7 Bankruptcy
You are Behind on Car Payments and Trying to Save your Car from Repossession
You have a Large Outstanding Tax Liability to the IRS
Chapter 13 Assets

Most Chapter 13 plans last for three to five years. Depending upon your income, expenses and assets, the Chapter 13 plan monthly payment can be as little as $120 per month. Our San Mateo bankruptcy lawyers will review your income, expenses, assets and other circumstances such as missed mortgage payments to determine approximately how much your monthly Chapter 13 plan payment may be. Call now to schedule a free consultation or submit your information on-line.

Save Your Home From Foreclosure

If you are behind on your mortgage payments and/or facing foreclosure, filing a Chapter 13 bankruptcy will stop the foreclosure and allow you to repay the missed mortgage payments in equal affordable monthly payments in a Chapter 13 bankruptcy plan.

Example:
- Mortgage payment is $3,000 a month
- 5 months behind, total of $15,000 owed on your mortgage
- If the Chapter 13 Plan term is 5 years (60 months), then you will pay approximately $250 a month for 5 years to repay the $15,000 owed
- If the plan is 3 years (36 months), then you will pay approximately $417 a month to repay the $15,000 that is owed on your mortgage

Get Rid of a Second and Third Mortgage or Line of Credit

If you have a second mortgage or line of credit on your home or investment property, a Chapter 13 bankruptcy will allow you can take advantage of your home or investment property losing value during the last few years and get rid of the second mortgage or line of credit forever.

Example:
- Purchased house in 2003 for $600,000
- 1st Mortgage $500,000; 2nd Mortgage $100,000
- Value of the house dropped to $450,000
- 2nd Mortgage of $100,000 is completely unsecured, there is no value in the property to secure the loan
- Chapter 13 allows you to avoid/strip off mortgages that have no value

Reduce or Cram Down a Vehicle Loan

If you have a vehicle loan and you purchased your vehicle 910 days prior to filing a Chapter 13 bankruptcy, you only have to pay the fair market value of the vehicle at the time or your bankruptcy filing.

Example:
- Purchased GMC Sierra for $30,000 in November 2007
- Loan is for 60 months with approximately 9% interest
- Monthly payment is approximately $600 a month before filing Chapter 13
- File Chapter 13 bankruptcy today, GMC Sierra is only worth $10,000 and you still owe $18,000 on the loan
- Chapter 13 plan you will pay the fair market value of the vehicle $10,000 over the length of the plan
- If the plan is 60 months, you will pay approximately $170 a month in the plan saving approximately $8,000

Your Income is Higher than the Median Income for your County

Bankruptcy law is based upon your income, expenses and assets. If your income for the number of people in your household is higher than the median income for your county based upon the number of people in your household, you may not be eligible to file a Chapter 7 bankruptcy.

You are Not Eligible to file a Chapter 7 Bankruptcy

If you have received a discharge in a Chapter 7 bankruptcy within the last eight years you are not eligible to receive another Chapter 7 discharge. You may be eligible to file a Chapter 13 bankruptcy.

You are Behind on Car Payments and Trying to Save your Car from Repossession

If you are behind on your car payments and are facing repossession, filing Chapter 13 bankruptcy will stop all repossession proceedings and allow you to catch up on missed payments in the Chapter 13 plan and keep your car.

You have a Large Outstanding Tax Liability to the IRS

If you have a large outstanding tax liability to the IRS or Franchise Tax Board bankruptcy can help. If the income tax debt meets all five of these rules, then the tax debt is dischargeable in Chapter 7 and Chapter 13 bankruptcy petitions.

1. The due date for filing a tax return is at least three years ago.
2. The tax return was filed at least two years ago.
3. The tax assessment is at least 240 days old.
4. The tax return was not fraudulent.
5. The taxpayer is not guilty of tax evasion.

CHAPTER 13 BANKRUPTCY TIMELINE
Debt Reorganization

1. Attend free consultation with bankruptcy attorney to determine if bankruptcy is the best course of action to stop the stress and burden of unmanageable debt, retain bankruptcy attorney to represent you in your bankruptcy filing and pay initial retainer.

2. Begin to pay remainder of bankruptcy attorney fees, stop using credit cards, stop making payments on debts that are dischargeable and refer creditors to your bankruptcy attorney.

3. Once the upfront portion of the bankruptcy attorney fees are paid in full, you will now provide the documents necessary to draft a complete and accurate petition for bankruptcy protection and you complete the required Credit Counseling course (On-line with a follow up phone call) with an approved provider. Your bankruptcy attorney will file the certificate of completion with the bankruptcy court.

4. Bankruptcy attorney prepares the bankruptcy petition in five to seven days to be filed with the bankruptcy court.

5. A signing appointment is scheduled for you and your bankruptcy attorney to review the bankruptcy petition and sign the bankruptcy petition before filing the petition for bankruptcy protection with the bankruptcy court.

6. The bankruptcy petition is filed with the bankruptcy court and the Automatic Stay takes effect stopping any and all efforts to collect your debts including foreclosures, repossessions, wage garnishments, lawsuits or bank levies.

7. Approximately 30-45 days after the petition for bankruptcy protection is filed with the bankruptcy court, you and your bankruptcy attorney will attend the Section 341 meeting of the creditors where the trustee assigned to your case will ask you a series of questions under penalty of perjury; you will receive notice of the 341 hearing in the mail directly from the bankruptcy court. In most bankruptcy filings this is the only hearing you will need to attend.

8. You will now begin making your Chapter 13 bankruptcy plan payments, the first payment is due 30 days from the date your Chapter 13 bankruptcy plan is filed, the Chapter 13 bankruptcy plan payment must be made to the Chapter 13 Trustee assigned to your case.

9. The 341 meeting is attended and concluded.

10. You now must complete the second course, Financial Management (On-line with a follow phone call) from an approved provider; your bankruptcy attorney will file the certificate of completion with the bankruptcy court.

11. The confirmation hearing to approve your Chapter 13 bankruptcy plan of reorganization, if required, is attended by your bankruptcy attorney, after the Chapter 13 bankruptcy plan is confirmed, the bankruptcy court will enter an order confirming the plan.

12. YOU HAVE NOW SUCCESSFULLY completed all the steps necessary to reorganize your debt, you will now continue to make the confirmed Chapter 13 bankruptcy plan payment each month for the term of your Chapter 13 bankruptcy plan (usually 3 to 5 years).

With offices in Redwood City, San Francisco, San Jose, Fremont and bankruptcy lawyers in Oakland we represent clients throughout the Bay Area including San Mateo County, Santa Clara County, Alameda County, Contra Costa County, Burlingame, Daly City, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City bankruptcy attorney, San Bruno, San Mateo, South San Francisco, Cupertino, Gilroy, Los Gatos, Milpitas, Mountain View, Palo Alto, Santa Clara, Sunnyvale, Concord, Danville, Martinez, Pittsburg, Pleasant Hill, Richmond, San Pablo, San Ramon, Walnut Creek, Berkeley, Dublin, Hayward, Livermore, Pleasanton, San Leandro and Union City.


By