Chapter 13 is useful if you have a home facing foreclosure, and your goal is to keep the home. Chapter 13 does have limits on the amount of secured debt and unsecured debt. Under a chapter 13 plan, you will pay back your creditors all or a certain percentage of your debt back over a period or 3 to a maximum of 5 years. Chapter 13 also provides you with the ability to get ride of the second mortgage on your house in certain circumstances.

Bankruptcy law under any chapter allows for exemptions on properties, such as home, car, household goods and furnishing, retirement funds, tools of trade, bank accounts, according to limits prescribed by the bankruptcy code. For example, Homestead exemption for a single is $75,000 and $100,000 for a married couple or unmarried individual with dependents. It increases to $175,000 for persons over 65, or disabled, or persons over 55 with low income. If you do not own a home, provisions of the California code allow you to keep assets of approximately $30,000.00 in different forms including cash or bank accounts.

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The facts of each case are the basis upon which the decision to file bankruptcy is made and under which section you should file. We provide a detailed free consultation to analyze whether bankruptcy is right for you and under which chapter you are better protected. Call now and ask to talk with me the attorney. Serving Glendale residents sine 1997.