Chapter 13 bankruptcy does not eliminate your existing debt, instead you will work towards reorganizing your debt and come to an agreement with your debtors on a repayment schedule that works for you. This is based on your income and financial situation, and you will be able to keep all of your property and assets instead of liquidating it.
If you file for Chapter 13 bankruptcy you will be required to make monthly payments for three to five years to a Trustee who will then redistribute the money to your debtors. In order to qualify for this option, you will need to show that you have the means and income to pay down your debt and you also have to prove that you are current on you state and federal tax returns.
Give us a call at 916-458-5190 for help with your bankruptcy concerns or fill out the inquiry form below to schedule a thorough case evaluation with our team.