If you’ve been considering Chapter 13 bankruptcy then it’s likely you have questions. At The Law Offices of Paul Y. Lee, we believe that your best option for the best answers is to contact us at 951-755-1000. We offer a free consultation and can answer all of your questions. That said, we’ve also provided answers to some of the most frequently asked questions below. We hope this will be helpful and that you’ll reach out to us with any bankruptcy related questions.
What exactly is Chapter 13 bankruptcy?
First and foremost, let’s discuss what Chapter 13 bankruptcy is and what it isn’t. Some people refer to it as “wage earner bankruptcy” because it’s designed to help those who have steady income. It can allow you to keep your home, car, and other types of property except those that aren’t exempt. If you choose Chapter 13 bankruptcy, you’ll be given time to repay a portion of the debt. There’s no interest, late fees, or penalties while you’re doing so.
What’s the biggest advantage of Chapter 13 bankruptcy?
Some debtors say that the biggest advantage of Chapter 13 bankruptcy is that they only have to pay back part of the debt and still get to keep their property. However, at The Law Offices of Paul Y. Lee we believe that the biggest advantage is that it gives you time to get your life back on track. You don’t have to worry about getting harassed by creditors, you don’t have to pay interest, and you don’t have to pay penalties. In the right situation, this could be a great help to you.
Can I keep all my property?
For the most part, yes. Chapter 13 doesn’t have the restrictions you’ll find with Chapter 7 bankruptcy. You’re able to keep most of your property including your vehicles, home, vacation home, RV, motorcycle, investment properties, business property, assets, inventory of your business, and all other property that isn’t otherwise not exempt.
How much are Chapter 13 payments?
Of course, one of the things you’ll be wondering about is how much your Chapter 13 payments will be. The best way to find out is to contact The Law Offices of Paul Y. Lee at 951-755-1000 for a free case evaluation. We can give you information about your specific situation.
The reason we can’t give you an exact figure that you’ll pay is that it all depends on your disposable income. This refers to your income (not including any child support you may be receiving) minus any reasonable costs for maintenance and support of you and your dependents. You can also give charitable donations of up to 15% of your gross income.
The amount that’s considered “reasonable costs for maintenance and support” is determined by state guidelines and evidence presented to the court. You need a bankruptcy attorney for a number of reasons, including to show the courts how much your expenses are and why they’re necessary.
It’s great to general information about bankruptcy. It’s better to get information that’s specific to your case. Call The Law Offices of Paul Y. Lee at 951-755-1000 for a free consultation.
