Los Angeles Chapter 13 Bankruptcy Lawyer
Chapter 13 bankruptcy is described as a debt relief process whereby you maintain ownership of your property while paying back all or a significant portion of your owed debts over a period of time, generally between 3 to 5 years. Unlike Chapter 11 bankruptcy, where your debts are absolved but there is often inevitable surrender of property and assets, Chapter 13 bankruptcy is a debt relief option that allows the person experiencing financial troubles to repay their debts while keeping their property intact. Also referred to as “Reorganization Bankruptcy,” Chapter 13 bankruptcy is an excellent possibility to establish financial stability if deemed an eligible candidate.
Chapter 13 Eligibility in Los Angeles
This method of debt relief is not a perfect fit for all financially struggling parties. Due to the fact that it requires one to repay all or a significant portion of owed debts, Chapter 13 bankruptcy eligibility requires that you must prove to the court that you can adequately maintain debt repayment obligations over a 3 to 5 year period. Factors that contribute to ineligibility include irregular or insufficient income as well as an overall debt scenario that exceeds what you might successfully reimburse within the window of time allotted. A skilled bankruptcy attorney who is well versed in the nuances of Chapter 13 bankruptcy will be able to assess whether or not your secured and unsecured debts are within an acceptable range.
Prior to filing for Chapter 13 bankruptcy, it is essential that you consult with a professional bankruptcy attorney. A Los Angeles Bankruptcy Attorney will assist you in determining what debt relief option is right for you, whether you are eligible to file for Chapter 13 bankruptcy and if eligible, what amount your monthly payments will be and for how long you will be required to pay.
Priority Debts – Los Angeles Chapter 13 Bankruptcy Lawyer
If it is determined that your debts are “Priority Debts,” they will need to be paid in full. Such debts may include the repayment of child support, spousal support or alimony, employee wages and overdue tax payments. Once you have created a comprehensive repayment plan with your attorney, all debts that remain and are eligible for absolution will be dismissed and you can start fresh with a clean financial slate. In the case of certain priority debts such as child support or alimony, you must prove to the court that you are paid in full on all such financial obligations before you can receive a formal discharge. An additional step in the Chapter 13 bankruptcy process may be for you to participate in a Budget Counseling Course in an effort to educate you on developing strong financial practices to avoid future financial distress.
Contact a Los Angeles Chapter 13 Bankruptcy Lawyer Today
We are proud of the rock-solid reputation we have earned among our former clients and colleagues and look forward to providing you with high quality legal assistance as you deal with the possibility of Chapter 11 or 13 bankruptcy or foreclosure on your home. Please contact our offices located in Sherman Oaks and Los Angeles today to speak with one of our bilingual staff members and to start the process of financial recovery. As a Southern California debt relief agency, we are standing by to assist you. Call us at (213) 699-3055 today for a free consultation.