By filing a Chapter 13 case, you can reorganize to retain your residence and also remove a second lien and other junior liens without having to pay. This second lien could be a home equity line of credit. You can also make a payment to cover your car payment, without having to pay the full balance of the vehicle loan through a process described as a “cram down”. Through this process you only pay what the car is worth.

If you have fallen behind on your bills and are being harassed by creditors contact Sacramento bankruptcy lawyer Tom Conlon at (916) 971-8880 to see if you qualify to file bankruptcy and get a new fresh start.