A Chapter 13 bankruptcy allows you to consolidate your debts into monthly payments that you should be able to pay off over three to five years. A bankruptcy lawyer helps you put together a plan proposal that we take to the courts. In the plan, we add up your income and expenses and lay out all the debt you need to pay back.
A recent court decision in California has tightened a loophole that might have allowed people to falsely inflate the amount of expenses they incur each month. These expenses, commonly called phantom expenses, involve property or collateral, such as a house or a car, that a person filing bankruptcy actually intends to get rid of. For example, let’s say you are making payments on a car. You want to file Chapter 13 bankruptcy, but you actually plan to surrender the car to the bank. You cannot compute the payments you were making on the car you’re going to get rid of when you put together the Chapter 13 Payment Plan.
Because changes to the laws of bankruptcy in San Diego change so often, it’s important to find a professional to help you evaluate the decision that’s best for you. Make sure your San Diego Bankruptcy Attorney is up to date on the most recent court decisions and regulations that could affect the success of your bankruptcy.
I’m always happy to sit down for a free consultation to explore all your options. Feel free to make an appointment today.
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