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Chapter 13

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Fresno Chapter 13 Bankruptcy Attorney

Seeking Help from a Fresno Bankruptcy Lawyer

When debtors want to file for bankruptcy and they earn enough money to pay back a portion or all of their debts, they usually file for Chapter 13 bankruptcy (the "wage earner plan"). Here is a breakdown of how Chapter 13 bankruptcy works. First, the debtor files for bankruptcy, which places a legal hold—or an "automatic stay"—on collection efforts by your creditors (most of the time), such as lawsuits, foreclosures, repossessions, wage garnishment, etc. If you are allowed to proceed with the bankruptcy, you get to start making payments under a new payment plan that is more manageable, with payments being made to priority creditors first.

After three to five years of successfully making these payments, you can usually have the remainder of your debt under the bankruptcy plan discharged. This means that you no longer owe the debt, and creditors cannot try to get you to pay it. There are many different factors that go into Chapter 13 eligibility, as well as into how this type of bankruptcy can impact a debtor. Because of this, you should proceed with your bankruptcy filing until after you have talked to a skilled lawyer. At Arnold Law Group, APC, we have Fresno bankruptcy attorneys who are well-versed in bankruptcy law. We can help you assess your financial situation and determine whether Chapter 13 bankruptcy is the appropriate debt solution for you!

Eligibility for Chapter 13 Bankruptcy

Since Chapter 13 bankruptcy is supposed to be for steady wage earners, those who are applying for this form of debt relief will typically only be approved if they can show that they have sufficient income for paying back their debt. Furthermore, their debt must not exceed a certain amount. Someone undergoing Chapter 13 bankruptcy cannot have secured debt totaling more than $1,149,525 or unsecured debt totaling more than $383,175. Some people choose to file under Chapter 13 because they earn too much money to qualify for Chapter 7 bankruptcy. Meanwhile, others choose this option because they don't want their assets to become subject to possible liquidation, which happens in Chapter 7 bankruptcy.

Our lawyers are here to help you navigate the process of filing for bankruptcy. Contact our firm today so that we can provide you with a case evaluation.