Chapter 13

After completing the Means Test, it may be discovered that you do not qualify for Chapter 7 bankruptcy but instead qualify for Chapter 13. This type of bankruptcy is a debt reorganization plan that allows you to repay your debts and regain control of your financial situation.

Dedicated California Debt Reorganization Attorney

Debt relief is just that — a relief. At the Law Offices of Elliott Abrams, we strive to help clients obtain answers and resolutions to their debts and financial situations. Chapter 13 bankruptcy is beneficial, as you are able to rebuild while paying what you can, when you can, to your creditors.

Contact attorney Elliott Abrams at our firm today to further discuss Chapter 13 and what it may mean for you.

What Is Chapter 13 Bankruptcy?

Where Chapter 7 is a discharge of certain debts and a liquidation of nonexempt assets, a Chapter 13 is essentially a court-approved repayment plan. This plan is structured by you and your lawyer, and then presented to the court for approval to begin repaying your creditors on a schedule. The plan typically lasts for five years but in certain circumstances could terminate earlier.

In many cases, a Chapter 13 bankruptcy is desirable and more beneficial than Chapter 7 as Chapter 13 allows you to structure the repayment of debts that would not be dischargeable under Chapter 7 such as most taxes. It further allows you to cure arrearages over the length of the Chapter 13 plan owed on secured debts in order to retain assets facing foreclosure or repossession. In some cases, under Chapter 13 you are able to bifurcate (divide into two separate portions) secured debts that exceed the value of the secured property into secured and unsecured portions, strip off the unsecured portion and treat it as your other unsecured debts. You are also able to strip off mortgages on your home and treat them as unsecured debts where the mortgage is completely unsecured (i.e., where the amount owing on the senior mortgage(s) exceeds the fair market value of the home).


Filing for bankruptcy does not automatically mean that you will lose your home. If you are facing a foreclosure, Chapter 13 can help stop the foreclosure proceedings, and provide you the time to organize your finances, so you are able to continue making payments on your mortgage.

To learn more about your bankruptcy options, including Chapter 13, contact our firm today. Attorney Elliott Abrams can review your situation and determine the best avenue of resolution for your case. Call the office today at 925-947-1333 to schedule your appointment.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.