Chapter 13 bankruptcy in Corona CA will give you extra time to pay your debts
If you feel like you’re drowning in debt, filing for Chapter 13 bankruptcy in Corona CA can serve as a sort of financial life preserver, consolidating your debts into a single reasonable monthly payment without interest, fees, or penalties for a period of 3 to 5 years so that you can stay afloat. Here’s what to expect from the Chapter 13 bankruptcy process.
Creation of a Court-Supervised Repayment Program
The creation of a court-supervised repayment program is the core of a Chapter 13 bankruptcy proceeding. Your bankruptcy attorney will help you submit a plan to the court detailing how much you plan to pay off each month and how much unsecured debt you plan to discharge at the end of the program. Of course, this plan will be subject to the court’s approval.
A 3 or 5 Year Plan
Whether the repayment plan for your Chapter 13 bankruptcy in Corona CA takes 3 or 5 years will depend on your income. Generally, if your monthly income is less than the state median for a comparably sized family, your repayment plan will last 3 years, and if it is more than the state median, your plan will last 5 years. However, if you want to pay all your unsecured debt in full, you may request a shorter plan time.
Payments Based on Your Disposable Income
The amount you will have to pay towards your debts each month will be based on your monthly income (not including child support) minus the amount required to support yourself and your dependents. The amount required to support a family is determined based on state guidelines and adjusted to suit your unique needs. You will definitely want an experienced attorney to help you calculate this amount.
No Interest, Fees, or Penalties While the Plan is in Place
One of the biggest benefits of a Chapter 13 bankruptcy in Corona CA is that it allows you to pay less than your minimum payments on non-priority unsecured debts without accruing interest, fees, or penalties. If any balance remains on these debts at the end of the plan, you can usually discharge them in full with no penalty.
No Property Forfeiture
While Chapter 7 bankruptcy requires you to wade through the California exemptions lists to figure out how much of your property you can keep, a Chapter 13 bankruptcy in Corona CA allows you to keep all your property. This includes your primary home as well as any vacation homes or investment properties you may have, not to mention vehicles, jewelry, and other assets.
