Chapter 13 Bankruptcy Information

What is the Timeline?

Chapter 13 Bankruptcy cases range between 3-5 years.
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What is the Process?

The first step is to call our office for a free consultation. During your consultation we will review your financial situation and determine which chapter you are eligible for/or need. If you do not qualify or need bankruptcy, we will suggest which solutions would be best effective for your financial situation. We will also provide information on how to rebuild your credit after bankruptcy.

What is discharged?

Unsecured debt, including credit cars, medical bills, repossession/foreclosure deficiencies and certain taxes (if old enough and timely filed). Recent (within 3 years) tax debt, student loans, family support obligations and criminal fines/penalties are NOT dischargeable.

Eliminate Your Second Mortgage

If you have more than one loan on your real property and that property is worth less than what is owed on the first mortgage/deed of trust, you may be able to “strip off” any junior liens: in order to do this we must demonstrate that the property is worth less than what is owed on the first mortgage/deed of trust. The stripped lien holder is treated as an unsecured creditor.

What Effect does this have on my Credit?

Chapter 13 can stay on your credit report up to 7 years. Our Office will show you how to rebuild your credit in 1-2 years. You may feel burned by your creditors and convinced you'll never want credit again. But your credit scores will be vitally important if you ever want a mortgage or an auto loan. Credit information is also used by insurers, landlords and employers, so your credit history and scores aren't something you can ignore. The good news is that you don't have to take on onerous debt to fill your credit reports with positive information to help offset past setbacks.

The key to repairing your credit is having and responsibly using credit cards. If you don't have any plastic, consider getting a secured card, where you make a deposit with the issuing bank -- usually $200 to $1,000 -- and get a card with a limit in the same amount. If you use the card lightly but regularly, charging no more than 30% of its limit and paying it off in full every month, your credit scores should slowly improve.

What is Protected

One of the many misconceptions regarding bankruptcy is that some or all possessions need to be forfeited; this is a myth perpetuated by zealous creditors who want to believe that there has to be a trade-off of sorts if bankruptcy is filed. In reality, a small percentage of filers lose any property. Retirement accounts are fully protected, and California has very liberal exemptions for household goods and other possessions.

FREE CONSULTATION

The Law Office of Scott Shumaker is willing and able to help you. Call us today for a Free Consultation. (916) 441-2199

We Can Help

Debt Relief
Stop Wage Garnishments
Keep Your Property
Keep Autos, Homes and Bank Accounts
Eliminate or Consolidate All Debts, Including Credit Cards, Medical Bills, Loan Companies and Taxes
Payment Plans Available
Evening & Saturday Appointments (Call for availability)

Bankruptcy Attorney serving the great Sacramento region, including West Sacramento, Rancho Cordova, Elk Grove, Roseville, Orangevale, Fair Oaks, Carmichael, Woodland, Folsom, Davis and surrounding communities. Contact the Law Office of Scott Shumaker, Sacramento's trusted bankruptcy attorney and get answers to your Chapter 7 and Chapter 13 concerns.