Chapter 13 Bankruptcy Attorneys in Irvine, CA
Despite what many people may think, bankruptcy has proven to be a useful tool against overwhelming debt. Chapter 13 is one of the most used bankruptcies in the U.S. As you will see throughout this article, Chapter 13 can be extremely beneficial for qualifying debtors. Our California bankruptcy attorneys can help you with your Chapter 13 case.
To learn more about your case in a free, confidential consultation with one of our Irvine, CA bankruptcy lawyers, call The Bankruptcy Group today at (800) 920-5351.
What is Chapter 13 Bankruptcy?
Chapter 13 bankruptcy is a powerful weapon to manage excess debt. Through Chapter 13, you may have the chance to get rid of your debt by implementing and successfully completing a repayment plan. This bankruptcy chapter is intended to help consumers manage their debt, pay their creditors, and obtain a bankruptcy discharge. However, Chapter 13 is not for everyone. This means not every debtor can qualify to take the advantages provided by Chapter 13. All debtors who wish to participate in Chapter 13 must go through a qualifying process – which we will discuss below.
Qualifying for Chapter 13 in Irvine, CA
Chapter 13 is meant to help people who are eligible under the provisions set forth by the Bankruptcy Code. Chapter 13 is intended to help people with enough or regular income to pay back their debt by implementing a repayment plan. However, there is a limit to the amount of debt you can have to qualify for the “wage earner’s plan.” First, your total secured liability (debt secured by collateral) cannot exceed $1,257,850. If your secured debts go beyond this threshold, you may not qualify under Chapter 13.
Additionally, your unsecured debt (debt not secured by collateral) cannot exceed $419,275, or you may not qualify. There are other alternatives such as Chapter 11, for debtors whose debt exceed both these quantities. If you meet these debt limit requirements, you may continue with your Chapter 13 bankruptcy process.
You must also have a steady income that allows you to pay back your creditors during the bankruptcy process. People who have low income and have unmanageable debt can file under Chapter 7. Part of the qualifying process requires participation in a debtor’s education program or “credit counseling.” A government-approved credit counseling agency should administer this course. Once you have successfully completed this course, you will receive a certification which you will need to show to continue with your bankruptcy process.
What Happens After I Qualify for Chapter 13 in Irvine, CA?
Once you have qualified for Chapter 13, you will need to work on the most important of your wage earner’s bankruptcy: your repayment plan. As part of your Chapter 13 bankruptcy, you will need to create a repayment plan that can last from three to five years. This plan will be proposed to the bankruptcy court as well as your creditors. This means your creditors can reject your proposal and ask you to modify it to their satisfaction. Your plan must meet specific criteria to be considered.
Your plan must be made in good faith. Fraud during the bankruptcy process can carry severe consequences. Additionally, your plan must be attainable or feasible. You must make sure you can make your monthly bankruptcy payments throughout your plan. Otherwise, you may not continue with your Chapter 13 process. If your wage earner’s repayment plan complies with all rules and regulations set forth by the Bankruptcy Code, you may be on your way to a new financial start.
We cannot stress enough the importance of making every monthly payment as specified under your plan. However, there may be situations where the debtor may not be able to make a payment. Some people may think they will be automatically disqualified from the process. Depending on your situation, you may be able to modify your plan. For instance, if your income decreases to no fault of your own, the court may agree to alter the plan to adjust to your financial circumstances. A skilled, knowledgeable Chapter 13 bankruptcy attorney can help you determine the best course of action during your wage earner’s plan process.
What Are the Benefits of Chapter 13?
Many individuals are afraid of bankruptcy because they believe they will lose everything they have. However, many people don’t realize that Chapter 13 can help them do just the opposite. When you file for bankruptcy, you obtain the protection of what is called an “automatic stay.” This legal recourse activates as soon as you file for Chapter 13, allowing you to protect important assets such as your home and car. This means that if you suspect foreclosure may be looming on the horizon, the automatic stay can stop that process. Additionally, once you have finished your Chapter 13 process, you will have the benefit of a new financial start. Talk to a skilled and experienced bankruptcy attorney who can guide you throughout the entire process.
Chapter 13 Bankruptcy Attorneys Serving California
If you or a loved one is facing financial difficulties in Irvine, CA, our bankruptcy attorneys can help. With decades of hands-on experience handling countless bankruptcy cases, we have developed the skills to provide nothing but high-quality legal representation. Don’t let a bad financial break take over your life and take away the home you worked so hard for. Let our experience, dedication, and commitment work for you. To learn more about your case in a free, confidential consultation, call The Bankruptcy Group today at (800) 920-5351.