Your Chapter 13 Bankruptcy Attorney in Modesto

If your home is in foreclosure, if you are behind on your car payments, or if you owe the IRS, Chapter 13 bankruptcy may be what you need.

Chapter 13 bankruptcy is a way to repay your debts slowly, with little or no interest, over a 3 to 5 year period. You make a monthly payment (usually a deduction from your pay-check) to a Chapter 13 Trustee, and he pays your creditors directly. While you're in a Chapter 13 repayment plan, creditors cannot try to collect from you personally; they can only receive monthly payments directly from the Chapter 13 trustee. Your Chapter 13 repayment plan is binding upon your creditors.

To be eligible for Chapter 13 bankruptcy, you must have a regular job or a consistent source of income. On top of paying your basic monthly living expenses (rent or a house payment, food, insurance, utilities, etc.), you also must be able to afford the monthly payment to Chapter 13 trustee. If you are eligible, Chapter 13 offers significant advantages.

Save Your Home; Strip off the Second Mortgage. If you are behind on your house payments and facing foreclosure, you can stop the foreclosure, resume making your normal house payments and catch-up through your Chapter 13 Plan on the amount that you are behind on your house payments. The lender foreclosing on your house has no choice in this if you can afford to start making payments again. In fact, if you have a second mortgage on your house, and the value of the house has dropped below the amount you owe to the lender on the second mortgage, you can actually strip off the second mortgage from your house through a Chapter 13 Plan.

Save Your Car; Repay Only the Value of the Car, Even if You Owe More. If you are behind on your car payments, and even if your car has already been repossessed, you can start making your car payment again and catch-up through your Chapter 13 Plan on the amount that you are behind on your car payments. If your car is worth less than what you owe the financing company, you can repay only the current value of the car in full, and the excess can be paid at pennies on the dollar.

Repay Taxes with No More Penalties or Interest. If you owe the IRS or the state for unpaid taxes, you can freeze the amount you owe as of the moment you file Chapter 13 bankruptcy (no more penalties or interest!), and repay the tax debt over time.

Consolidate Student Loans. You must repay government backed student loans, but you can do it in one monthly payment, along with your other debts, through a Chapter 13 bankruptcy. You may be able to restructure a student loan significantly so that you can actually afford to pay it off.

Protect Cosigners. Cosigners receive the same protection that you receive through Chapter 13 bankruptcy. Thus, if a friend or family member cosigned on your vehicle, a Chapter 13 bankruptcy can protect them from your creditors.

Chapter 13 Bankruptcy Requires an Experienced, Knowledgeable Attorney. Chapter 13 bankruptcy is complex. Many bankruptcy attorneys do not practice in the area of Chapter 13 bankruptcy, because they do not know enough. However, the experienced bankruptcy attorneys at The Bankruptcy Center have achieved confirmation over hundreds of Chapter 13 consolidation plans on behalf of clients. We have helped people save their homes, save their cars, get out from underneath crushing tax debt, or repay student loans that they thought could never be repaid. To find out if we can help you, contact The Bankruptcy Center today to schedule a FREE initial consultation.