(951) 226-5294


What is Chapter 13 bankruptcy? How is it different from Chapter 7?

CHAPTER 13 - Allows you to enter into a plan with your creditors to repay your debts.

Your chapter 13 plan allows you to repay your creditors back for pennies-on-the-dollar. This means is that you can pay back anywhere between 0% and 100% to your creditors. The amount of your payment is based on your ability, such as your income, family size and monthly expenses.


Chapter 13 has some distinct advantages over chapter 7, it allow you to repay debts that are not dischargeable in a chapter 7 over an extended period of time. In addition, Chapter 13 can get you current on your mortgage payments so the mortgage company will not foreclose on your house. Chapter 13 may also help you keep your car by paying the car through your chapter 13 plan. In some circumstances Chapter 13 can also remove mortgages on your house.