Cerritos Chapter 13 Bankruptcy Attorney
Over $30 Million in Debt Saved for Clients in Los Angeles, Orange County, and Throughout California
There are several bankruptcy filing options for you to choose from, with Chapter 13 being a common option for those who are capable of meeting a repayment plan. If you are wondering whether Chapter 13 is right for you or how to navigate the filing process, contact our leading bankruptcy attorney at Anyama Law Firm. We have helped clients throughout California recover over $30 million in debt, and we can help you, too. We aim to provide personalized, one-on-one legal counsel at an affordable price – including starting a bankruptcy filing for ZERO DOLLARS DOWN. Let Anyama Law Firm help you on the path to financial freedom.
Schedule a free consultation with Anyama Law Firm online to get started today. Se habla español.
Who Is Eligible for Chapter 13?
To qualify for Chapter 13 bankruptcy, you must meet the following eligibility requirements:
- Your secured debts and unsecured debts cannot exceed certain amounts ($1,257,850 of secured debt and $419,275 of unsecured debt as of 2019).
- You must prove to the court that you have a steady, regular income that can afford to meet both your monthly household obligations and pay into a repayment plan.
- You are not a business. Only individuals can file Chapter 13.
Note that you will have to submit proof that you filed your federal and state income tax returns for the 4 tax years prior to your bankruptcy filing date. If you don't produce your returns in sufficient time, your Chapter 13 case will be dismissed.
The Chapter 13 Repayment Plan
The key component of Chapter 13 bankruptcy is the repayment plan you’ll propose to your creditors and the court. The plan should take into account each of your debts and how you plan to handle them. Whereas Chapter 7 involves liquidating your assets, Chapter 13 involves repaying creditors over a period of time.
The judge will approve your repayment plan if it is feasible (you have enough income to pay the debt), proposed in good faith, and compliant with bankruptcy law. You will be expected to complete your plan over 3-5 years, after which your debt will be officially discharged (as opposed to your debts being immediately discharged through a Chapter 11 confirmation).
The length of the repayment plan will depend primarily on how much you earn, though most end up with a 5-year plan. Some debts you may expect to repay in Chapter 13 include:
- Priority debt (child support, alimony arrearages, most tax obligations)
- Secured debt (car loan, mortgage)
- Unsecured debt (credit card balances, medical bills)
- Value of nonexempt property (if you can afford to do so; you will have to pay the value of any property that you cannot protect with an exemption)
Note that you do not necessarily have to fully repay your unsecured debts; you merely need to show that you are putting your remaining income towards their repayment.
It’s hard to predict the future, even the near future of 3-5 years. If you have experienced a financial change that impacts your ability to make payments, you might be allowed to modify the amount being paid to your unsecured debtors. In some situations, the court might even let you discharge certain debts due to hardship, such as if you have incurred a debilitating illness.
It is also possible to convert to a Chapter 7 bankruptcy if you are unable to meet your payments. This does put up your nonexempt property for liquidation, however. An experienced Chapter 13 attorney can help you evaluate your options based on your situation.
Chapter 13 is a good bankruptcy filing option if you are able to repay at least some of your debts over time. Anyama Law Firm is highly experienced with Chapter 13, and we offer thoughtful and affordable bankruptcy assistance to clients throughout Los Angeles, Orange County, and all over California. We can help you at every stage of your bankruptcy filing, from choosing the right type of bankruptcy to file for to proposing your Chapter 13 repayment plan.
Reach out to our attorney at Anyama Law Firm for a free initial consultation to discuss your legal options. Se habla español.
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