Chapter 13 Bankruptcy: A Lifeline for Drowning Debts
At S&B Legal we are here to help you save your financial future. Releasing the weight of a crushing debt can be possible if you receive advice from our bankruptcy attorneys with extensive experience in Chapter 13 bankruptcy in California. Navigate to a safe harbor with the help of the best.
Chapter 13 Bankruptcy: What does it entail?
Settling your debts is possible. Chapter bankruptcy 13 is a path that makes it easier for you to reorganize and settle your debts with installment payments.
What is Chapter 13 bankruptcy? The Bankruptcy Code allows you to propose a plan to pay off your debts over a set period of time.
People who can file for Chapter 13 bankruptcy are those who have regular income and whose assets will be protected from lawsuits or seizures while the process lasts. The bankruptcy court will approve your payment plan and determine full or partial payment within three to five years. The good news? No interest or late fees.
Chapter 13 Bankruptcy Requirements: What You Should Know
If you want to benefit from Chapter 13 Bankruptcy, there are rules and provisions that you must know and comply with:
- It only applies to individuals.
- You need to prove sufficient regular income.
- Time can be a limit: The payment plan is three or five years.
- The amount of the debt can be an obstacle: If you exceed the limits established by law of $2,750,000 dollars for secured and unsecured debts, you will not be able to obtain Chapter 13 Bankruptcy protection.
Knock on the door of a bankruptcy attorney in Los Angeles, California, to study your case and tell you which of all the available bankruptcy options best suits your case.
The pros and cons of filing for Chapter 13
Getting a financial break will be the main benefit of filing for Chapter 13 bankruptcy. The feeling of getting back on your feet after a difficult financial situation will be an incentive to continue forward.
The pragmatic benefits of filing for Chapter 13 bankruptcy are the following:
- Rescheduling secured debts in a time adapted to the debtor’s possibilities.
- Opportunity to save your properties from foreclosure and make a Payment Plan for late mortgages.
- You can avoid evictions.
- You can keep your assets while you pay, cancel your debt at a pace adapted to your conditions, and sometimes even pay less.
- Your salary cannot be seized while you are in bankruptcy.
- Eliminates interest and penalties on certain taxes.
- Protects third parties who secured the debtor’s debt.
- The debtor will not have direct contact with their creditors. Your attorney’s legal fees may be included in your payment plan
Disadvantages of a Chapter 13 bankruptcy:
- Payments must be made monthly and on time.
- Failure to pay may result in you losing the protection of the bankruptcy court.
- Your credit score may be affected.
- You will not be able to take on significant new debt without court approval, which would have to consider that incurring that debt is for “good reason.”
- Legal fees are higher than those for Chapter 7.
It is best to consult with your bankruptcy attorney about which of the bankruptcy chapters is best for your situation. An attorney with extensive experience in Chapter 13 bankruptcy will guide you and help you gather all the information necessary for the court to issue a fair decision.
Contact S&B Legal for Bankruptcy Chapter 13 Bankruptcy Advice
With S&B Legal on your side, you can be sure that you will get through the financial crisis that led you to file for bankruptcy in the best possible way.
Â
Request a free case evaluation or call us at (760) 302-4652 so that we can help you be freed from the debt trap if you decide to file your case with us. We will help you define the best payment plan to be approved by the bankruptcy court, whether it is Chapter 7 or 13 bankruptcy. Our experienced bankruptcy attorneys in Los Angeles, CA will free you from distress, protect your rights, and save you from debt.
