At one time, practically everyone who could chose to file a Chapter 7 bankruptcy. With the changes made in The 2005 Bankruptcy Act, this is no longer possible. The addition of the Statement of Current Monthly Income and Means Test Calculation has changed this. Instead, individuals may choose or be forced to use Chapter 13 Bankruptcy in San Jose. A lawyer in San Jose can help you determine if this is the type of bankruptcy for you. He or she can also provide you with specific information you need to file correctly.
Chapter 13 Bankruptcy
A Chapter 13 Bankruptcy is termed a “debt adjustment.” Unlike Chapter 7 which eliminates and forgives debt, Chapter 13 is geared towards helping the debtor get out of debt by arranging for him or her to pay it off. This requires consolidation of the various debts. Throughout the process, the onus is on the debtor – not court or government officials, to come up with a viable financial plan to pay down and eliminate the debt.
When to Opt for Chapter 13
A bankruptcy attorney can best explain who can opt for this method. Yet, a Chapter 13 Bankruptcy in San Jose, lawyer will tell you the following indicates this may be your best option:
- Foreclosure: If you find that your home is in a state of imminent foreclosure, Chapter 13 Bankruptcy tends to be the better solution. It will call an immediate cease to the process while and during the process you take to prepare a practical and scheduled payment plan.
- Vehicle Repossession: The livelihood of many American depends on their vehicles. If yours is about to be repossessed, filing using Chapter 13 may prevent this action occurring.
- Wages: If you are currently having your wages garnished or they are being assigned, talk to a Chapter 13 bankruptcy lawyer. Filing will put an end to this.
- Income Level: If your current monthly income is currently too high (talk to your lawyer about the Means Test), you may have no choice but to apply for Chapter 13 Bankruptcy. A lawyer may be able to try for Chapter 7, but this may not be possible.
Consult a Chapter 13 Bankruptcy Lawyer
When it comes to reducing and eliminating debt, you may have to move for bankruptcy. While Chapter 7 Bankruptcy may appeal, that is no longer an easily available solution. Turn to a Chapter 13 Bankruptcy attorney in San Jose. He or she can help you decide whether this is the means to help you overcome your situation. For more information visit Shulman Law Office.
