Chapter 13 Bankruptcy
Sacramento Chapter 13 Bankruptcy | Chapter 13 Bankruptcy Lawyer Sacramento | Chapter 13 Bankruptcy Attorney
Chapter 13 bankruptcy lets you enter into a court approved plan to seal with your debts over three to five years. Some debts must be paid in full (back taxes are the most common examples), while others may be paid only in part. The basic idea is that you must devote all your disposable income to whatever plan is approved by the bankruptcy court.
The bankruptcy code has guidelines for calculating exactly how much you must pay back into your plan, based on your income:
1) If your current monthly income (as defined by the bankruptcy law) is more than the median family income for your state, you must pay all of your "disposable income" into your plan for five years. To calculate your disposable income, you must use expenses dictated by the IRS, which could be significantly less than your actual expenses. This means that you may be obligated to pay more money into your plan than you actually have left over each month, after paying your bills and living expenses.
2) If your current monthly income is less than the state median, you can propose a three-year repayment plan. You can also calculate your disposable income using your actual expenses, rather than the IRS standards.
If you are having financial hardship and are considering filling for bankruptcy in the Sacramento area, please call a Sacramento chapter 13 bankruptcy attorney toll free at (888) 446-4333 for a FREE confidential Sacramento chapter 13 bankruptcy consultation.