Bankruptcy Attorney

Chapter 13 Assets

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If you have an asset with a value that exceeds what can be protected by bankruptcy exemptions you may still keep the asset if you can afford to pay the equivalent value of the asset in a plan of reorganization. Chapter 13 assets can be protected. Below is a simplistic example of how an asset can be protected when filing a Chapter 13 bankruptcy. This process can be far more complicated than this example.

For Example:
One of the most common high value assets some of our clients have are multiple vehicles that are all paid in full. If the value of all the vehicles is $36,000 there is no way each vehicle can be exempted or protected. In a chapter 13 bankruptcy you may keep the asset and pay your creditors in the plan of reorganization what cannot be protected.

Vehicles worth: $36,000

Exemptions Applied: $17,500

Amount Unprotected: $18,500

To keep the vehicles you will have to pay your creditors the $18,500 over three to five years in the plan of reorganization. One of the problems is that you most likely are having some financial difficulty or you would not be seeking bankruptcy help. The question will be if you can afford to make the monthly chapter 13 plan payments to keep the vehicles.

Estimated Monthly Chapter 13 Plan Payment

$18,500/60 months = $308.33 per month

Chapter 13 Trustee Fee = $32.00 per month

Remainder of Attorney Fees = $50.00 per month

Total $390.33 per month for 60 months

The example above is assuming a number of things. First, that you want to keep all of the vehicles and you have significant unsecured debt that far exceeds the $18,500 paid back in the plan of reorganization. Upon completion of the plan the debt that you do not or cannot afford to pay back is discharged just like in a Chapter 7 bankruptcy.

With offices in Redwood City, San Francisco, San Jose, Fremont and Oakland we represent clients throughout the Bay Area including San Mateo County Bankruptcy Lawyers, Santa Clara County, Alameda County, Contra Costa County, Burlingame, Daly City, Foster City, Half Moon Bay, Millbrae, Pacifica, Redwood City, 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.