Riverside Chapter 13 Bankruptcy Attorneys Plan Your Escape from Debt
Reorganization of debt helps you fight home foreclosure
One of the leading reasons for the enormous growth of Riverside and the rest of the Inland Empire from the 1970s onward has been affordable housing. Hundreds of thousands of blue collar families who couldn’t afford to own their own homes in Los Angeles County were able to live that American dream in the Riverside-San Bernardino-Ontario metropolitan area. Unfortunately, the Great Recession that started in 2008 and more recently the COVID-19 lockdowns hurt employment and forced many homeowners into jeopardy of foreclosure. If you have a steady job, but can’t possibly repay what you owe and fear you might lose your home, Chapter 13 bankruptcy could be the answer you’ve been looking for. At the Law Offices of Michael Jay Berger, my staff and I provide highly professional, personalized bankruptcy services to help ensure you get the full protection of the law.
How Chapter 13 bankruptcy works in the Inland Empire
Chapter 13 is not the quick route to a clean slate. Unlike a Chapter 7 liquidation bankruptcy, which can discharge your eligible debt in a couple of months, Chapter 13 reorganizes your debt and puts you on a payment plan that is based on your monthly disposable income. That payment plan can last from three to five years, depending on your income and how much you owe. But your monthly payments can be significantly less than your current monthly bills. When you complete your plan, the bankruptcy court discharges your remaining eligible debt.
Why choose Chapter 13 for your Riverside bankruptcy? Here are a few possible reasons:
- You earn too much to qualify for Chapter 7
- You want to save your home from foreclosure
- You have a high-value automobile you want to hold onto
While secured debts such as mortgages remain in force, you may be able to strip second mortgages and other junior liens under certain circumstances. If you owe more on your house than its current market value, the bankruptcy court may treat a second mortgage as an unsecured loan and include it in the repayment plan, discharging whatever debt remains at the end of your plan period.
To be eligible to file Chapter 13, as of 2020, your secured debt cannot be more than $1,257,850 and your unsecured debt cannot exceed $419,275.
As with Chapter 7, a debtor who files under Chapter 13 gets immediate protection from creditors through an automatic stay. This is a court order that prohibits your creditors from contacting you about your debt. This means no annoying phone calls or threatening letters during the Chapter 13 process, even though the plan takes a few years to complete.
Visit my Riverside, CA office for a free Chapter 13 bankruptcy consultation
The Law Offices of Michael Jay Berger provides highly professional Chapter 13 bankruptcy services for clients in the Riverside-San Bernardino-Ontario metropolitan area and throughout the Inland Empire. My downtown Riverside office is located at 4480 Main Street. To discuss the specific facts of your case, please call me now at 310-271-6223 or contact me online for a free initial consultation. My staff is fluent in Spanish, Korean, Farsi, Armenian, Russian, Hebrew, Vietnamese, Khmer (Cambodian) and Mandarin Chinese.