The Chapter 13 covers many of the questions and situations below:

When people think of bankruptcy in Orange County, they tend to believe that only people who make very little money can file bankruptcy. What people don’t realize that in most circumstances it does not matter how much or how little you make. The Bankruptcy Code offers different types of Bankruptcies that cover numerous situations. The Chapter 13 allows people who might not qualify for a Chapter 7 to still seek protection under the Bankruptcy Code.

Can I file bankruptcy if I make too much? I can pay my credit cards but am living month to month. I don’t qualify for Chapter 7, what are my options? Should I seek debt settlement? Should I seek debt negotiation? Can I consolidate my debt? How can I restructure my debt? Can I keep my house if it has equity and I want to file for bankruptcy? I have assets with equity, can I file for bankruptcy? My attorney said I will lose my property if I file for bankruptcy, do I have other options?

Chapter 13 is an Option

For the questions above, filing a Chapter 13 bankruptcy is almost always an option. Under the Chapter 13, debts are restructured in a way to get out of debt in 3 to 5 years. Not only does the Chapter 13 eliminate unsecured debt, there are many other reasons debtors prefer the Chapter 13. Below is a discussion on all of the benefits off the Chapter 13 Bankruptcy.

Avoid or remove your second mortgage

A Chapter 13 can help you avoid your second mortgage. As long as your home is worth less than the first mortgage you might be able to avoid your second mortgage altogether. The bankruptcy court will treat your second mortgage as any other unsecured creditor. Contact Tran Bankruptcy Law, Orange County, California Bankruptcy Attorneys, for more information about avoiding your second mortgage.

Pay off back taxes off

Many people find themselves in debt with the IRS. Although IRS debt is difficult to discharge in a Chapter 7, many people will use a Chapter 13 to get their IRS debt paid off. In a Chapter 13, any plan payments made towards the Bankruptcy court will first go towards paying off your IRS debt before unsecured creditors. This is a great tool to get current with taxes and eliminate all of your other debt. The Orange County Bankruptcy Attorneys at Tran Bankruptcy Law can explain this in further detail at the no risk, free consultation.

Save your home and pay off mortgage arrears

If you are facing foreclosure, a Chapter 13 is an excellent method to save your home. Like back taxes, if you are behind on your mortgage payments, payments toward the Chapter 13 plan will go towards the mortgage arrears before it goes to unsecured creditors. After the Chapter 13 plan is over, you will be current on your mortgage payments. Many people who don’t qualify for loan modifications will take advantage of the opportunity the Chapter 13 gives to save their homes. Tran Bankruptcy Law can help Orange County clients file a Chapter 13, and work with them throughout the entire length of the Bankruptcy case.

Pay off student loans

Chapter 13s give clients a number of options when it comes to student loans. One financial solution, is to pay student loans as part of the Chapter 13 Plan. People who are behind on their student loans, or no longer have options to defer the loan or put the loan into forbearance will use the Chapter 13 to manage the unbearable student loan payments. The Chapter 13 helps get these loans back on track and current. In some cases, people will be able to pay off their entire student loan while in the Chapter 13. The Orange County bankruptcy attorneys at Tran Bankruptcy Law can provide a free, no risk consultation to explain these student loan benefits.

Consolidate all of your debt including student loans, car payments and back taxes

The Chapter 13, many times is considered to be a debt restructuring tool. The benefit of the Chapter 13, is that you can make one feasible plan payment for all of your debt. The Court will take care of dividing out the money. More importantly, depending on your financial solution, there is no requirement to pay back 100 percent of your debt. The Chapter 13 is about what you can afford, not so much how much you owe. Contact Tran Bankruptcy Law to have attorneys explain all of your Orange County Bankruptcy options and tools.

Reduce payments or garnishments on debts from lawsuits

As stated above, there is no specific requirement to pay back 100 percent of your debt. The Chapter 13 is a tool to make the debt manageable. After the length of the Chapter 13 plan, any amount still owing on lawsuits, credit cards and other unsecured debt will be discharged. The theory behind a Chapter 13 is that you have enough money to pay some of the debt, but you cannot keep up with the payments on all of the debt. The Chapter 13 makes your payments feasible, and only requires you to pay the plan payment for a period of 3 to 5 years. Tran Bankruptcy Law will always listen and provide experienced knowledge on any Orange County Bankruptcy question. The consultation is free to take advantage of.

Eliminate debt even if you have property and assets with equity (protect your property)

In many cases, people have property with equity. A Chapter 7, would require a person to liquidate their assets. A Chapter 13, helps the client save those assets. Therefore, if value of property goes up, the person filing a Chapter 13 will be in a much better position after the case concludes.

Stop harassment and stop lawsuits while catching up on your payments

Like Chapter 7, filing a Chapter 13 will require creditors to quit the harassing phone calls and lawsuits. The creditors are forced to abide by the Bankruptcy courts decisions. The Chapter 13 can help you take back your life and control of your financial situation. Tran Bankruptcy Law will go after creditors that do not abide by the Bankruptcy protections.

Tran Bankruptcy Law and here to provide your Southern California Bankruptcy needs.  The consultation is free.  We service Orange, Los Angeles and Riverside Counties which in includes, but not limited to Santa Ana, Tustin, Irvine, Anaheim, Costa Mesa, Orange, Newport, Huntington, Westminster, Huntington, Garden Grove, Long Beach, Cerritos, Diamond Bar, Ontario, West Covina, Rowland Heights, Whittier, Corona, and Chino.