The purpose of a Chapter 13 bankruptcy is to consolidate and reduce the debt to one monthly payment over a 3-5 year period of time to pay off, at least, a portion of your debt. You have to file a Chapter 13 if you have assets you want to keep but would lose in a Chapter 7, you have debt which can only be dealt with in a Chapter 13, or you have too much money left over at the end of the month and can afford to pay off at least some of your debt over time.

The purpose of a Chapter 13 bankruptcy is to consolidate and reduce the debt to one monthly payment over a 3-5 year period of time to pay off, at least, a portion of your debt. You have to file a Chapter 13 if you have assets you want to keep but would lose in a Chapter 7, you have debt which can only be dealt with in a Chapter 13, or you have too much money left over at the end of the month and can afford to pay off at least some of your debt over time.

Yes, it is as it brings several important benefits:

• Firstly, keeping your home in San Diego from foreclosing is the most beneficial reason for filing a Plan of Reorganization. The past due balance on your mortgage loan will be restructured into your monthly plan payment. Meanwhile, you retain your home and keep it out of foreclosure.
• Another positive is that your debt will be restructured into one fixed monthly payment. You will not have to pay multiple payments every month. Instead, your creditors will be paid each month by the Bankruptcy Trustee appointed to your case by the United States Bankruptcy Trustee.
• Your payments will be set for a period of 3 or 5 years. To determine the length of your plan, your monthly income will be calculated using the "means test". If your income is higher than the "median income" for your household size, your payments will be structured over 5 years. If your income is below median, your plan length will be 3 years.
• Unsecured debts are not paid any interest in a Chapter 13 plan. This amounts to potentially thousands of dollars of savings on interest alone.
• Another reason to file bankruptcy under this chapter is the ability to reduce the balance owed on your vehicle loan. Process called a "cram down" (only available through a Chapter 13 filing) can reduce the balance owed on your vehicle loan. Using the "cram down" you can also reduce the interest rate on your vehicle loan.

Not to mention that you will begin rebuilding your credit!

There isn’t a minimum amount of debt you should have incurred to qualify for Chapter 13 bankruptcy. However, there are limitations regarding the maximum amount of debt allowed for a successful plan or case.

The allowed maximum amount for secured debt is $1,257,850 and $419,275 for unsecured debt. Note that these amounts are strictly enforced and miscalculating them can result in the dismissal of your case. However, even if you exceed debt limitations, you can still attempt to file Chapter 11 bankruptcy in San Diego.

Law Offices of Mark L. Miller will help you calculate the maximum debt amount and advise you on the best course of action.

You will not lose your property if you can afford to keep making the monthly payments designated in your bankruptcy plan. That is why you need experienced Chapter 13 bankruptcy attorneys in San Diego to outline a sound repayment plan. Law Offices of Mark L. Miller will design a unique plan for your particular situation.

Law Offices of Mark L. Miller are your reliable bankruptcy attorneys who are able to help you with all the aspects of your case, whether you’re thinking about filing Chapter 7 bankruptcy or Chapter 13.

We will explain the important aspects of the bankruptcy process, handle all the paperwork for you, and file it to ensure your claim is successful. We want you to get out of your debt and regain financial freedom. Reach out to us today and begin your financial recovery!