QIM 33 | Bankruptcy | Caffeine Law

How It Works

Chapter 13 reorganizes your debt into a single plan you pay over three to five years, based on what you can actually afford. The day you file, the automatic stay stops foreclosure and repossession. Through the plan you cure the past-due amount on your house or car while staying current going forward — and at the end, remaining qualifying unsecured debt is discharged.

Saving the House

A missed-payment foreclosure is one of the most common reasons families choose Chapter 13. The plan lets you spread the arrears (the amount you fell behind) over the life of the plan while you resume normal mortgage payments. As long as you keep up, the lender cannot complete the foreclosure.

The Car and the Cramdown

Chapter 13 can also protect your vehicle. If you bought the car for personal use more than 910 days before filing, you may be able to 'cram down' the loan to the car's actual value rather than the balance owed. Newer loans are treated differently, so the timing of your purchase matters.

What to Do

Chapter 13 plans are built around your real budget, and small drafting choices change what you keep and what you pay. A Caffeine Law consultation maps the plan to your numbers before you file.

Caffeine Law — consultation | Michael Benavides, Esq., CA Bar No. 270714 | 707-362-4166 | attorneymichaelbenavides.com

ATTORNEY ADVERTISING. Caffeine Law is a trade name of the law practice of Michael Benavides, Esq., California State Bar No. 270714. General information only — not legal advice, and no attorney-client relationship is formed by reading this. Bankruptcy outcomes depend on your specific facts; exemption amounts, the median-income figures, and deadlines change, so verify current numbers. Prior results do not guarantee a similar outcome.