Orange County Chapter 13 Bankruptcy Attorneys – Experience Matters
What is Chapter 13 bankruptcy? Also referred to as “wage earners plan” or “payment plan bankruptcy,” Chapter 13 bankruptcy simply a reorganization debt (whereas Chapter 7 bankruptcy discharges or wipes out all debt). When should you choose to file Chapter 13 over a Chapter 7 bankruptcy? Here are some reasons why one would file for a Chapter 13 bankruptcy:
- You did not pass the means test
- You are behind in house or car payments
- You had a lapse in income and can now afford to pay your debts but not as much or as fast as your creditors demand
- You cannot work toward an agreement with creditors
- You owe debts that are not dischargeable in Chapter 7 (like child support, taxes or fraud judgments)
- You are not a corporation or other business entity
It typically takes anywhere from 3 to 5 years to pay back your debts under Chapter 13.
