It is a myth that when you file for Chapter 13 Bankruptcy, you are in a financial prison where you cannot make any purchases.  That is false.  If your car breaks down and you need to finance a replacement car or you need a loan to replace the roof on your house, the bankruptcy court usually will allow those necessary expense for the welfare of you and your dependents.  Of course, those expenses have to within reasons.  No luxury cars but no lemon.  A reasonably price, dependable car.  After all, you are trying to get out of debt and not into more unnecessary debt.  Throughout my experience as a bankruptcy attorney I never had a bankruptcy judge or Chapter 13 Bankruptcy Trustee object to a reasonable car loan or loan for home repair.

It is also a myth that your case will be automatically dismissed if you are a few days late on one Chapter 13 Bankruptcy plan payment.  That is also false.  You may have good reasons for being late on your payment, for example, illness, expensive home or car repairs, wages cut.  Your bankruptcy attorney can put late payments in the back end of your plan by modifying your plan.  Moreover, there might be room to reduce your plan payment or temporarily reduce your plan payment depending on your case.

Life do change and so can your Chapter 13 Bankruptcy plan to adjust to those changes in most cases.  Chapter 13 Bankruptcy is more flexible than what the above myths suggest.  For more information on how Chapter 13 Bankruptcy and Chapter 7 Bankruptcy work, you should always consult a Sacramento bankruptcy attorney and not your friends or co-workers even though they mean well; it is always better to ask an expert in the field.

If your Chapter 13 Bankruptcy plan payment no longer works due to lost of income, you might be able to convert your Chapter 13 Bankruptcy case into a Chapter 7 Bankruptcy case assuming that you do not have non exempt assets that you want to keep.  A Bankruptcy conversion can be made through a motion filed with the Sacramento Bankruptcy Court or Modesto Bankruptcy Court.  You will have to consult an experienced Bankruptcy Attorney to determine if a conversion is the right decision in your case.

For more information, schedule a consultation with Muoi Chea Bankruptcy Attorney in Sacramento, Stockton, Fairfield, CA.  She will go over the flexibility and restriction of Chapter 13 Bankruptcy to determine if this is the best option for you to obtain debt relief from credit cards, personal loans, IRS tax levy, creditor lawsuits and other debts.