Chapter 13 Bankruptcy Lawyer in San Francisco

Who can file for Chapter 13 bankruptcy?

Do you have a regular, steady source of income but are burdened by a heavy debt load? Or, is your home facing foreclosure? If your answer is yes to either of these questions, then you may be a perfect candidate for the Chapter 13 bankruptcy.

Chapter 13 is similar to a debt consolidation plan where you pay a percentage of the debt you owe typically at 0% interest. This form of bankruptcy enables people with regular incomes to create a plan to repay all or a portion of their debts over a three to five year time period at a monthly payment they can reasonably afford.

If the debtor’s income is below the applicable state median, the plan will be set for three years unless the court approves a longer period. If the debtor’s monthly income is higher than the state median, the plan will be for five years. During the 3 to 5 year time period, the law forbids creditors from commencing or continuing any collection efforts against the debtor.

Pros & Cons of Chapter 13

When debtors are deciding whether to file a Chapter 7 or Chapter 13 bankruptcy, it’s important to consider what types of debts they have as well as their financial goals. One of the most significant differences and advantages of a Chapter 13 versus a Chapter 7 is that the Chapter 13 gives debtors the opportunity to save their homes from foreclosure, or pay back a high amount of tax debt with minimal penalties and interest.

A Chapter 13 can also allow people to reschedule secured debts and extend them over the life of the Chapter 13 payment plan. Other advantages of a Chapter 13 include:

  • A Chapter 13 lowers a debtor’s monthly payments.
  • A Chapter 13 can protect co-signers.
  • It allows home owners to cure delinquent mortgage payments over time.
  • It acts like a debt consolidation loan.

With a Chapter 13, the debtor writes a check to the Chapter 13 trustee every month who in turn, distributes the money among the creditors. There is no direct contact between the debtor and his or her creditors; the trustee handles this for them.

Contact a San Francisco Bankruptcy Attorney

At Kostopoulos Bankruptcy Law, our lead attorney is a Certified Bankruptcy Specialist by the American Board of Certification. We have been named among the Top 100 Firms by the Debt Education and Certification Foundation (DECAF), and we have represented over 6,000 bankruptcy clients. We are well-aware of the stress and anxiety associated with financial problems, and we are here to help you find the most viable solution that will allow you to keep your property such as your home, your automobile, your jewelry and your personal possessions etc.

We can be reached directly at (877) 969-7482 to arrange a consultation with one of our San Francisco bankruptcy professionals.