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San Jose / Silicon Valley, California
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Chapter 13 Bankruptcy
Chapter 13 bankruptcy is a debt adjustment procedure for individuals with regular income, who have unsecured debts under $269,250 and secured debts under $807,750. The Debtor The debtor files a bankruptcy petition with schedule of assets and liabilities and statement of financial affairs, along with a Chapter 13 plan. The plan provides for repayment of the debtor's debts over a 3-5 year period, from the future earnings of the debtor. A trustee is appointed to receive payments from the debtor and disburse them to creditors. The debtor remains in possession of all of his property, exempt and non-exempt. Upon completion of payments under the plan, the debtor typically receives a discharge, even if he has paid less than 100% of the debt. Certain debts, however, must be paid in full to be discharged, such as:
The debtor attends a meeting of creditors. Creditors are not entitled to vote on the plan, but are allowed to file objections to the plan if they believe that the plan does not comply with Chapter 13 requirements. Creditor Payments Creditors will receive
differing amounts of money under a Chapter 13 plan, depending on the
nature of These payments are made by the debtor making payments to the trustee, and the trustee then making disbursements to the creditors. Contacting Us For an appointment in regards to the above issues, the law office of Henry Rendler can be contacted at bankruptcy@rendlerlaw.com or at 408.293.5112.
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the debt, i.e., whether priority, unsecured non-priority, or
secured. Priority debt typically includes recent taxes (generally less
than 3 years old), and certain spousal and child support claims. Unsecured
non-priority debts include older income taxes (generally, more than 3 years
old), credit card debt, medical bills, personal loans, and any deficiency
claims. Secured debts include real estate mortgage loans, car loans, and
furniture and jewelry loans.
