A Chapter 13 bankruptcy is often termed a “debt adjustment.” In other words, this type of bankruptcy requires the individual who finds him or herself in debt to file a specific plan. The intent of this plan is to provide proof to those involved that he or she is ready, willing and able to pay to the loaner the entire amount of the loan or at least parts of it from current income.
If you live in the State of California, whether may be considering filing a Chapter 13 bankruptcy in San Jose CA. A lawyer may well be the best judge of whether or not circumstances warrant this approach. Doing so may well be beneficial financially. It may also prove to be wise in certain circumstances.
Basic Rationale for Filing Chapter 13 Bankruptcy
To file a Chapter 13 Bankruptcy in San Jose CA, a Lawyer may consider any of the following situations:
Foreclosure: Your home is falling into or is already in foreclosure. Declaring bankruptcy under Chapter 13 will make the Mortgage Company or lender accept repayment over time. This usually ranges between 3 and 5 years. Under bankruptcy law, the lender cannot put into place or continue with the foreclosure process. This allows you to rearrange your financial situation to file a plan and, therefore, make payments to reduce the debt and control it
Car Repossession: While Bankruptcy is often associated with homes, it can also be applicable in cases of vehicle repossession. If your care is about to be repossessed by the lender, you can stop it from occurring by declaring Chapter 13 bankruptcy. This forces a consolidation of your debts, including overdue and future car payments. They become part of the overall plan required for “debt adjustment.” As a result, the lender cannot go ahead and repossess your vehicle.
Garnished or Assigned Wages: If you are currently having your wages either garnished or assigned, filing a Chapter 13 bankruptcy will halt this process. No longer will any money be deducted from your pay check. The action also prevents potential lawsuits from proceeding. In turn this stops the entering of possible judgments against you.
Pre-requisite for Chapter 13 Bankruptcy
Not everyone can opt for a Chapter 13 Bankruptcy. Even if they are facing these circumstances, their claim may be ignored. In order to qualify, an individual must have proof of a reliable e.g. weekly or monthly, source of income. In addition to this, the debtor must demonstrate he or she is able to pay back some of the money owed.
In California State, talk to a Chapter 13 Bankruptcy Lawyer to help clarify your position. A qualified Lawyer for Chapter 13 Bankruptcy in San Jose CA will be able to best advise you as to the best approach. He or she can guide you through the potential land minds of the proceedings and results. For more information visit Shulman Law Office.