Chapter 13

In Oakland and throughout the San Francisco Bay Area, the Law Offices of Baron J. Drexel helps people save their home from foreclosure and regain their financial footing through the assistance of a Chapter 13 bankruptcy.

Unlike Chapter 7, a Chapter 13 bankruptcy does not require the debtor to sell off any assets in order to receive a discharge of debts. Instead, the debtor, with input from a creditors’ committee and the help of a bankruptcy trustee, devises a plan to make monthly payments over a three or five year period. At the end of the plan period, any remaining debt is discharged by the bankruptcy court.

A Chapter 13 debt adjustment is commonly referred to as a wage earner’s plan, because it is best suited to a consumer with a steady paycheck and some amount of disposable income. A Chapter 13 bankruptcy has many advantages. First of all, payments under the plan are limited to the amount of disposable income available, so you don’t have to worry about not being able to meet your monthly obligation. Also, your creditors are bound to accept the terms of an approved plan and cannot harass you or try to collect the debt some other way. In fact, you will not have to deal with your creditors at all but will make your monthly payment to the bankruptcy trustee, who distributes payments to the creditors according to the plan.

Probably the biggest advantage of Chapter 13 to many people is its ability to stop a home foreclosure. If you are facing foreclosure because you have missed several mortgage payments, Chapter 13 allows you to "catch up" those late or missed payments by rolling them into the plan. As long as you are complying with the plan and staying current on your mortgage payments, the bank will not be able to foreclose.

If you are considering bankruptcy, the first step is to meet with a knowledgeable and experienced attorney who can help you determine whether bankruptcy is the right option for you, and whether you should file for Chapter 13, Chapter 7, or another provision of the Bankruptcy Code. Baron Drexel has been practicing bankruptcy law in the Bay Area for 15 years and can provide you with the assistance you need to turn your financial situation around. Contact the Law Offices of Baron J. Drexel and make a fresh start today.

We are a federal debt relief agent.