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Experienced Chapter 13 Bankruptcy Attorneys in Chico-Redding

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Chapter 13 bankruptcy differs from Chapter 7 because you are able to keep your assets. While people who choose Chapter 7 surrender most or all of their assets and erase some debts, people who file for Chapter 13 bankruptcy work out a payment plan to keep their assets by reorganizing debts. The plan may extend repayment periods for some debts, lower the principal or reduce the interest rate. During that time, an automatic stay prevents further debt collection attempts from creditors. Individuals, married couples and some businesses can use Chapter 13.

Chapter 13 Bankruptcy for Individuals and Married Couples

If you are living together or separated, it is important to inform your spouse if you plan to file for bankruptcy. This gives your spouse time to take steps to protect herself or himself. Some couples choose to file together if their assets are combined or if the spouse who owes the most debt also holds the most assets. Since California does not allow doubling of assets to benefit spouses filing together, it may not always be the right choice to file together. Our attorneys can discuss your situation and the current applicable debt limits for qualification.

Chapter 13 Bankruptcy for Businesses

When you plan to go out of business in addition to filing for bankruptcy, you may consider Chapter 7, as well. If you plan to continue operations, Chapter 13 is a must. We help you develop a repayment plan to submit to the court. This may mean that you have a smaller principal, a lower interest or a longer repayment period for your debts. If you own a corporation or a partnership, you must use Chapter 11 to file for bankruptcy.

When repaying with reduced payments will still not allow you enough for living expenses and paying your business debts, this may not be an ideal solution. Chapter 13 makes sense if your debt was the result of a severe but temporary downturn. Contact us to discuss which plan is right for you.