Huntington Beach, CA Chapter 13 Bankruptcy Attorney
Going through a tough financial situation can put you under a lot of stress, especially when your home, car, and other assets are on the line. In such a situation, it can be easy to get caught up in the moment and lose hope. However, you don’t need to let debt or difficulties take over your life. Bankruptcy can provide you with the tools to clean your slate and get rid of excess debt.
If you or a loved one is going through a difficult time and is considering filing for bankruptcy, our Huntington Beach, CA, Chapter 13 lawyers can help. To discuss your specific situation with one of our knowledgeable, experienced lawyers, call The Bankruptcy Group today at 1-800-920-5351.
When to File for Chapter 13 Bankruptcy
Chapter 13 bankruptcy is one of the most common types of consumer bankruptcies in the U.S. It is meant to help debtors handle and pay off their debt. Chapter 13, also called the “wage earner’s plan,” is used by people who have access to enough disposable income to pay their debt over time. Unlike Chapter 7, where people have to go through what is known as a “means test,” in Chapter 13, debtors do not have to meet this requirement. However, a means test can help debtors understand whether Chapter 7 or 13 is better for their specific circumstances.
A means test involves comparing a debtor’s income to their state’s median income. If your income is above the median, you will not qualify for Chapter 7. However, this does not mean you cannot file for another type of bankruptcy. This is where Chapter 13 comes into play.
People with enough disposable income can file for Chapter 13 bankruptcy and pay off their debt. If you are going through a tight financial situation, need to manage your debt, and are looking for a discharge, Chapter 13 may be able to help. Our Huntington Beach, CA, bankruptcy attorneys can help you determine whether you should file for Chapter 13.
Filing for Chapter 13 Bankruptcy in California
Filing for Chapter 13 requires you to meet specific criteria set forth under the law. Furthermore, while you can file under Chapter 13 to manage excessive debt, it does not mean that there is no restriction to the amount of debt you can have. As a debtor, you likely have two main types of debt: secured and unsecured. Secured debts are those guaranteed by collateral, whereas unsecured debts are not. A typical example of secured debt would be a mortgage, while credit card debt is a classic example of unsecured debt.
As of 2019, there are several thresholds debtors must meet to qualify for Chapter 13. If you wish to be eligible for Chapter 13, your secured debt cannot exceed $1,257,850. Additionally, your unsecured debt cannot exceed $419,275. In other words, if your debt goes beyond these thresholds, you may not qualify for Chapter 13. Our skilled, knowledgeable Huntington Beach Chapter 13 lawyers can help you understand whether you are eligible for bankruptcy.
The Chapter 13 Filing Process in California
The Chapter 13 process involves a series of steps that must be strictly followed. Chapter 13 begins by completing your petition and going through what is known as a credit counseling course. This course, which is offered by an approved credit counseling agency, will teach you about debt management and how to subsequently create your repayment plan.
Once you have completed your credit counseling course, you can file your petition. Once you file for Chapter 13, you will obtain the protection granted by the “automatic stay,” which allows debtors to protect their home from foreclosure and stops creditors from collecting debt while bankruptcy proceedings are underway.
You will also need to go through a creditor’s meeting where many aspects of your debt will be discussed and where you will come up with a repayment plan that must be accepted by your creditors. Once your plan is approved, you will start making payments.
Be sure to comply with all conditions stated in your repayment plan, or you risk having your bankruptcy case dismissed. Once you complete the Chapter 13 bankruptcy process, the court will grant you a discharge. Our Huntington Beach bankruptcy attorneys can help you through the entire process.
Huntington Beach, California Bankruptcy Lawyers Handling Chapter 13 Cases
Going through financial hardships can feel overwhelming, especially if you are your family’s sole provider. That is why we at The Bankruptcy Group dedicate our efforts to providing high-quality bankruptcy law services to all of our clients. Over the years, we have helped thousands of people manage their debt through bankruptcy. Do not let unfounded, misguided ideas about bankruptcy stop you from getting the debt relief you need. To speak with a professional about the specific circumstances surrounding your case, call the Huntington Beach, CA, bankruptcy attorneys at The Bankruptcy Group today at 1-800-920-5351.