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Chapter 13 – Bankruptcy

ANAND LAW PC > Practices  > Bankruptcy & Reorganization > Chapter 13 – Bankruptcy

(ADJUSTMENT OF DEBTS OF INDIVIDUAL WITH REGULAR INCOME a/k/a THE REPAYMENT PLAN)

BANKRUPTCY IS A FUNDAMENTAL RIGHT THAT IS GUARANTEED UNDER THE CONSTITUTION.

A few unfortunate events can lead to a cycle of debt which quickly becomes impossible to overcome.  The law offers a solution by providing a way for you to eliminate some or all of your debt. Designed to provide honest but unfortunate debtors a “fresh start,” the Chapter 13 can allow you to reorganize for your financial future, and halt bill collectors, wage garnishments and lawsuits to give you the breathing room necessary to do so.

THE CHAPTER 13 REPAYMENT PLAN

If you qualify, a Chapter 13 will allow you to retain your home while paying off a percentage of your unsecured debts. You will be required to make monthly “plan” payments to the Bankruptcy Trustee. The Bankruptcy Trustee then pays your creditors. The plan payments will need to be made for three to five years, after which time you will owe nothing to your pre-filing unsecured creditors. ANAND LAW can devise an economically feasible plan which will allow you to retain your home and pay off unsecured debtors at an affordable rate.

FORECLOSURES AND CHAPTER 13 BANKRUPTCY

If you are facing foreclosure, filing for Chapter 13 bankruptcy may allow you to save your home. ANAND LAW can navigate the bankruptcy and real estate laws in order to allow you to halt foreclosure and make reasonable payments to continue living in your home.

REMOVING LIENS IN CHAPTER 13 BANKRUPTCY

In a Chapter 13 bankruptcy, you can remove fully unsecured liens from your primary residence.  This includes junior mortgages (including HELOC), HOA, tax, and judgment liens.

CHAPTER 13 VS. CHAPTER 11

If you have over $1,257,850 in secured debt, or $419,275 in unsecured debts, (these are the limits as of April 2019 and change every 3 years), you are not eligible for a Chapter 13, but you can still reorganize your financial situation with a Chapter 11.  A Chapter 11 can be used to prevent foreclosure, retain multiple properties, and remove liens and “cram down” mortgages (i.e. reduce the mortgage to the market value of the property).  Anand Law can evaluate your situation and determine what is best for you. Click here for more information on Chapter 11 bankruptcy.

ANAND LAW HAS SUCCESSFULLY:

  • SAVED HOMES FROM FORECLOSURE
  • REMOVED MORTGAGE AND HELOC (HOME EQUITY LINE OF CREDIT) LIENS
  • REMOVED HOA (HOMEOWNERS’ ASSOCIATION) LIENS
  • SOLD PROPERTY THROUGH BANKRUPTCY
  • PREVENTED CREDITORS FROM OBTAINING “NON-DISCHARGEABLE” DEBTS
  • HAD SUCCESSFUL PLANS OF REORGANIZATION PAYING UNSECURED CREDITORS PENNIES ON THE DOLLAR