Chapter 13 Bankruptcy - San Diego Bankruptcy Lawyers In California

Chapter 13 Bankruptcy Lawyers in San Diego, California

Bankruptcy is not just for people who have low income. With the way consumer debt has spiraled out of control, many high wage earners are unable to keep up with paying their mortgage, credit card bills and medical costs. These high-income professionals were seeking a concrete plan that would allow them to get out of debt within three to five years and they found it by filing for Chapter 13 bankruptcy protection. In many cases, Chapter 13 bankruptcy is the best way back to stability for people who need debt relief but also want to protect certain assets.

If you have a solid income but too much debt to service, or specific problems such as a pending or likely foreclosure, please contact us. Do not assume that your income is too high or relief is unavailable. At Avraham & Robinson, LLP, we know both real estate and bankruptcy law, and we want to help.

A Plan that Can Eliminate Some Debts and Protect Critical Assets

Chapter 13 bankruptcy does not discharge or "liquidate" all unsecured debts in the same way Chapter 7 does. Instead, the filer is required to submit a debt repayment plan for secured debts and, typically, a portion of unsecured debts over a period of three-to-five years, not to mention that interest on unsecured debt is stopped so you actually pay off the principal you owe instead of interest. Monthly payments must then be made to an officer of the court called the bankruptcy trustee.

One of the immediate benefits of filing for Chapter 13 bankruptcy is that it provides an automatic stay that ends the stress of creditor harassment, prevents judgments and garnishments, and stops or delays foreclosure proceedings. Chapter 13 is often the best available solution for people who:

• Have an unmanageable debt load but income that exceeds the limit for filing Chapter 7 bankruptcy
• Need relief from immediate pressures and the opportunity to repay debts over time
• Must seek reform of a mortgage or other loan to prevent default and foreclosure
• Need to eliminate pressure from unsecured debts and gain time to pay "priority" obligations including back taxes or family support in arrears

Protect your Home

Chapter 13 bankruptcy enables you to temporarily stop any foreclosure proceedings on your home. One of the great benefits of chapter 13 is that in many cases you only pay back the value of the home.

Consider for example that a person bought a house 3 years ago for $500,000. The primary loan to finance the house purchase was for $375,000 and the secondary loan was for $125,000. Depending on the neighborhood, the current value of the property may well be only $375,000 or less. If that is the case, then this person, by filing a chapter 13 bankruptcy may be able to request that the court wipe out the $125,000 loan because it is no longer secured by the value of the house. If successful, this person will not only remove a portion of the unsecured debt he owes, not only have the interest on unsecured debt frozen, but will also save a $125,000 which they would have had to pay back with interest.

If you owe more on your house than it is currently worth, you should contact our office and schedule an appointment with one of our attorneys.

Helping You Restructure Debt and Regain Stability

In today's turbulent real estate market, more people are filing Chapter 13 bankruptcy as part of an overall approach to keeping the family home. In 2006, there were 4345 bankruptcy filings in California's Southern District. In 2008, in the first three quarters alone, there were over 10,000 filings. Please contact our offices today to discuss your specific debt challenges with a skilled knowledgeable attorney so that you can make an informed choice.

We are a San Diego, California debt relief agency. We are licensed attorneys helping people file for relief under the Bankruptcy Code.