This video explains the pros and cons of filing Chapter 13 bankruptcy. This process is often known as “wage earner bankruptcy,” and is designed to aid those who have a steady income to pay off some or all of their debts through a court-approved payment plan.
Chapter 13 is helpful for homeowners because they are not forced to lose or liquidate their assets to pay off their debts. This can also help small businesses, which can pay off large debts with future earnings. In this process, a portion of future income to be paid to trustee, who then makes loan payments on the filer’s behalf for a period of three to five years.
If you are facing foreclosure and have a steady stream of income, Chapter 13 bankruptcy can help you change the terms of your mortgage to make it easier to pay off. Struggling homeowners in Southern California should contact Golden State Law Group by calling (619) 234-3333.