Chapter 13 Bankruptcy

chapter-13Chapter 13, while somewhat less common that Chapter 7 Bankruptcy, is a powerful tool which allows for the adjustment of debts for an individual with regular income. Among the many advantages of Chapter 13 are the fact that a homeowner may be eligible to strip, or remove a second mortgage from their home; a debtor who owns a car that is underwater may be eligible to cram-down the loan amount to the fair market value of the vehicle; a debtor who has non-exempt assets may be able to avoid the liquidation of those assets, as would be the case in a Chapter 7 bankruptcy; and a debtor may actually be able to repay most or all of his or her outstanding obligations through a plan of repayment.

For more information about Chapter 13 bankruptcy, you can review the information on the US Court’s website here, or call David Gibbs at (949) 492-3350 for a free initial consultation.