Are You Eligible to File a Chapter 13 California Bankruptcy Case?

Posted by on Dec 23, 2011 in Chapter 13 Bankruptcy Issues | 0 comments

Anyone receiving some source of income can file a chapter 13 California bankruptcy case – at least any individual wage earner or individual generating a form of reliable income.  It is important to understand that chapter 13 is a voluntary process – thus anyone is eligible to file a chapter 13, if they otherwise haven’t filed for bankruptcy recently.

It’s become clear that after speaking to people in need of bankruptcy assistance, that there is a misconception about who can file chapter 13.  Unfortunately, I’ve spoken to many individuals going through bankruptcy that many attorneys out there who only file consumer chapter 7 cases tell such potential clients that these clients aren’t eligible for chapter 13 simply because those attorneys want to retain the clients for chapter 7 filings!   Some attorneys tell clients filing chapter 7  will discharge the debt on the second mortgage and/or Home Equity Line of Credit on their prinicipal residence but fail to clarify that the bank still retains its lien on the property, leaving the client to think the bank’s interest in the home is wiped out – which is completely untrue!  Hearing such news is deflating because people in need of financial assistance and/or bankruptcy relief deserve better than that.

Again, understand that ANYONE getting some for of income is more than likely eligible to file a chapter 13 California bankruptcy case.  Your attorney should be able to tell you WHY chapter 7 is advantageous to chapter 13.   Good attorneys who only file chapter 7 cases should still be able to explain WHY chapter 13 will not work to the client’s benefit.  If an attorney ever tells you that you do not QUALIFY for chapter 13 although you receive money or earn income from some source, run away and find someone else who is competent because that attorney is not giving you the legal guidance you deserve.



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