Bankruptcy, Chapter 13
Filing Chapter 13 bankruptcy is for people who have some discretionary income after their normal and usual monthly expenses are deducted from their normal monthly income. The big difference between Chapter 7 bankruptcy and bankruptcy, chapter 13, is that there are monthly payment plans created for the chapter 13 debtor. Payments must be made to the Chapter 13 Trustee over a period of 3 years (sometimes as long as 5 years).
What are these payments? These payments are usually some or all of your credit card debt, whatever you may be behind on your mortgage payment, and sometimes your car loans. This is a good way to stop foreclosure and save your house, as well as stop creditor harassment. And of course, all the California bankruptcy exemptions still apply, so you can keep some or most of your stuff.
You're going to want a skilled Los Angeles bankruptcy attorney to help you so you can make your payment plan no more than you can afford for your Chapter 13.
More Chapter 13 Information
