Bay Area Chapter 13 Bankruptcy Attorney

Overwhelming debt can impact those with substantial income and assets as well as those with little or no income. With nearly 20 years of experience, Grech Legal‘s founder, attorney Matthew Grech, understands that every story is different. He provides personalized debt relief guidance from three convenient offices in San Jose, Redwood City and Oakland.

Chapter 13 bankruptcy helps small business owners and middle- to high-income individuals and families keep their assets. It also allows people with steady income to restructure debt into a manageable three- to five-year payment plan. It helps those who earn too much to qualify for Chapter 7 or who want to save their homes from foreclosure.

Chapter 7 Vs. Chapter 13

While both of the primary bankruptcy options provide relief from debt, they function differently depending on your income and assets. Selecting the right path depends on your specific financial goals and the type of property you want to protect.

• Chapter 7: Often called “liquidation bankruptcy,“ allowing individuals to eliminate most unsecured debts, like credit cards and medical bills, typically in four to six months.
• Chapter 13: Known as a “reorganization bankruptcy,” you generally keep your property and pay back a portion of your debt over three to five years through a court-approved plan.

Each person’s financial situation requires a different legal strategy. Attorney Grech helps you evaluate your debt to determine which chapter provides the most effective solution.

Eligibility For Chapter 13

Not everyone qualifies for Chapter 13, also called “wage-earner bankruptcy,” as it requires a specific financial structure to satisfy the court. You must meet specific requirements regarding your income and total debt, including:

• Stable income: You must prove you have enough regular income to cover your monthly living expenses and the new bankruptcy payment.
• Debt limits: Your total debt must remain below the separate federal limits for secured and unsecured debt (currently $1,580,125 and $526,700).
• Tax filings: You must have filed all federal and state tax returns for the four years preceding your bankruptcy filing.
• Individual status: Chapter 13 applies to individuals and sole proprietors, not to corporations or other large business entities.

Meeting these criteria is the first step toward securing your assets. If your income is too high for Chapter 7, this reorganization plan offers a vital alternative that lets you stay in control of your finances.

Benefits Of Filing For Chapter 13

A reorganization bankruptcy’s primary advantage is the ability to stop foreclosure and keep the items you have worked hard to own. It provides a powerful shield against aggressive collection actions from creditors, typically meaning you can:

• Save your home: You can stop a foreclosure sale and pay back missed mortgage payments over time.
• Protect co-signers: The court may grant a temporary stay for co-signers of consumer debt, though creditors may seek relief if the plan does not fully cover the debt.
• Prevent repossessions: You can keep your vehicle and other secured property by including the payments in your plan.
• Consolidate payments: Make a single monthly payment to a trustee instead of managing multiple creditors and varying due dates.

These benefits allow you to breathe easier while you work toward a debt-free life. Many people find that the structure of a court-protected plan reduces the stress of daily financial uncertainty.

The Chapter 13 Process

The journey through a reorganization plan involves several formal steps and regular communication with the court. It starts with a detailed filing and ends with the discharge of your remaining eligible debts. Steps include:

• Credit counseling: You are required to complete a government-approved credit counseling course before filing.
• Filing the petition: Your attorney files the necessary paperwork and a proposed repayment plan with the bankruptcy court.
• Automatic stay: As soon as you file, an automatic stay goes into effect, which legally stops creditors from calling, suing or garnishing your wages.
• Meeting of creditors: You must attend a brief meeting where a trustee asks questions about your finances and your proposed plan.
• Plan confirmation: A judge reviews your plan to ensure it meets legal requirements and is fair to your creditors.

Once the court confirms your plan, you simply make your scheduled payments for the duration of the three- to five-year period. Completing the plan results in a discharge, generally meaning you no longer owe the remaining balances on the included debts.

Schedule A Free Debt Relief Consultation

You do not have to face financial hardship alone. Grech Legal provides the skilled guidance you need to stop creditor harassment and protect your Bay Area home. Attorney Grech is ready to listen to your situation, and his firm offers a free initial consultation to discuss your debt relief options and help you choose the best path forward. Call his Bay Area firm at 408-214-0385 or contact the firm through the online form today.

This is a debt relief agency. Attorney Matthew Grech helps people file for bankruptcy relief under the Bankruptcy Code.