Understanding San Bernardino Chapter 13 Bankruptcy
San Bernardino Chapter 13 bankruptcy has more requirements than does a Chapter 7 bankruptcy. This is because a Chapter 13 bankruptcy allows an individual to keep possession of his or her property, and offers additional benefits that a Chapter 7 liquidation case does not. Many people mistakenly believe that all debts must be fully repaid under a Chapter 13 repayment plan, and thus do not consider it as one of their options. However, a San Bernardino Chapter 13 Bankruptcy only requires that you fully repay priority debts over the course of the repayment plan. Consumer debt, such as credit cards, must only be repaid in an amount equal to what would be received under a Chapter 7 bankruptcy. In many instances, this may be as little as 10% of what you owe, or even less. If your creditor could not expect to be paid anything under a Chapter 7 liquidation, then they need not be included in a San Bernardino Chapter 13 repayment plan.
Just as in a Chapter 7 bankruptcy, there are certain qualifications you must meet in order to be able to file. In general, San Bernardino Chapter 13 Bankruptcy is considered to be a viable option for those who do not qualify under a Chapter 7 plan due to the new laws. However, you must fall within the following guidelines in order to qualify for a Chapter 13 bankruptcy:
- You do not owe more than $1,010,630 in secured debt
You do not owe more than $336,900 in unsecured debt
You have a steady income that will allow you to repay your debts over the life of the repayment plan
Additionally, you are expected to attend an approved financial counseling and debt management class, just as you are in a San Bernardino Chapter 7 bankruptcy case. This can be beneficial to you, as it will help you to create a reasonable budget, which is another component of the Chapter 13 bankruptcy. Once you have a repayment plan in place, you will need to begin making payments to the San Bernardino bankruptcy trustee within 30 days, even if your case has not concluded. Therefore, it is in your best interests to have a budget that is both accurate, and reasonable with regards to necessary expenses such as food, gas, and utilities.
San Bernardino Chapter 13 bankruptcy can seem confusing, and the requirements necessary to get underway may seem daunting to an individual who is seeking quick relief from his or her debt woes. However, our team of experienced San Bernardino County Bankruptcy Attorneys can make this process manageable for you, and help you to understand exactly what you need to do in order to get the fresh financial start you deserve.
Contact our premier San Bernardino County Bankruptcy Law Firm today and arrange for a free initial case evaluation. We will assess your situation and provide recommendations that can help you to successfully file and complete your Chapter 13 bankruptcy, and regain your financial stability.