Chapter 13 Bankruptcy

Chapter 13 Bankruptcy in Upland: A Path to Financial Stability

If you’re struggling with overwhelming debt but want to protect your assets, Chapter 13 bankruptcy might be the solution for you. Known as the “wage earner’s plan,” Chapter 13 allows you to reorganize your debts and create a manageable repayment plan, giving you the opportunity to catch up while keeping your property. At Hedtke Law Firm, we specialize in helping Upland residents achieve financial relief through Chapter 13 bankruptcy.

What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy enables you to restructure your debts into an affordable 3- to 5-year repayment plan based on your income. Unlike Chapter 7 bankruptcy, which involves liquidating nonexempt assets, Chapter 13 focuses on debt reorganization, making it ideal for individuals with steady income who wish to retain their home, car, and other assets.

How Chapter 13 Bankruptcy Works

When you file for Chapter 13, the court issues an “automatic stay,” which stops most collection actions, including foreclosure proceedings, repossessions, and creditor harassment. You’ll propose a repayment plan that prioritizes secured debts, like mortgage arrears or car loans, while providing an opportunity to reduce or eliminate certain unsecured debts. Once the plan is approved by the court, you’ll make regular payments to a bankruptcy trustee, who then distributes the funds to your creditors.