Chapter 13 Bankruptcy for San Diego Residents

Chapter 13 Consolidation

Chapter-13 bankruptcy, sometimes known as a Wage Earner Plan, is a different type of bankruptcy that allows the debtor to keep most all of their property if they will be willing to repay creditors to the extent they can afford to do so over a three to five year period. A bankruptcy attorney at our San Diego practice can help you decide if consolidation is your best option.

Often, most people seek bankruptcy protection due to illness, loss of work, divorce, or just plain bad planning. Please do not feel guilty or ashamed. Keep in mind that you have been subjected to numerous professional sales people who have surrounded you with seductive messages urging you to buy. The credit card companies have spent billions urging you to accept their easy credit so that you can live beyond your means. The result is that you are tied down because they want to make huge profits on your purchases and interest payments.

Please understand that there is more to life than a perfect credit rating and if you are considering bankruptcy, your credit rating is probably already gone. What is important is your family, friends, and neighbors. It is not easy to always manage perfectly on finances and why should you be any different in this era of multibillion-dollar bailouts for poorly managed companies. Fortunately, since biblical times, societies have discouraged debtors from "falling on their swords" when overwhelmed with debt. Schedule a bankruptcy consultation with an attorney at our office in San Diego.

Chapter-13 of the Bankruptcy Code is designed to enable individual debtors under court protection and supervision to apply a portion of future earnings to the payment of all or a portion of their debts over an extended period of time. The debtor is protected from creditors by an automatic stay while a plan of repayment is developed and carried out. It is similar to Chapter-11 Business Reorganization. In fact, Chapter-13 is sometimes called "Consumer Debt Adjustment".

Chapter-13 was intended to give the wage earner a reasonable opportunity to arrange installment payments out of future income so that creditors would receive more money than they otherwise would receive in liquidation. If you are even thinking of Bankruptcy, contact a bankruptcy attorney at our San Diego office for your free debt evaluation.

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