Los Angeles Chapter 13 Bankruptcy Attorneys
Resolve Debts Through a Repayment PlanAre you constantly hassled by creditors threatening to repossess your possessions, even the car you drive to get to work? Has your mortgage company continuously warned you that they will foreclose your home? Are you sick and tired of having your hard-earned wages being immediately garnished by the IRS? If the answer to any of these questions is "Yes," you should immediately turn to our dependable Chapter 13 bankruptcy lawyers in Los Angeles.
At The Turoci Bankruptcy Firm, our seasoned and empathetic bankruptcy attorneys can support you through the application process, helping you avoid the scare tactics imposed by creditors and illegitimate businesses trying to scam you out of your hard-worked salary.
Call us today at 888-332-8362 for a completely free, completely non-obligatory consultation.
What Is a Chapter 13 Bankruptcy?If you earn wages in any shape or form of business, then Chapter 13 bankruptcy could be the perfect plan for you. The way that this bankruptcy plan works is by making any individual – who also is earning a reliable, regular income – finally be able to pay off the entirety of their debts, or at least the major portion. In order to apply for this Chapter, what debtors need to do is come up with a reasonable repayment plan that demonstrates how they can realistically return installments over three to five years to their creditors.
How Are Chapter 13 Repayment Plans Calculated?Debtors must propose a repayment plan that structures their debt into manageable monthly payments.
Repayment plans typically will factor in:
- Amount of Debt: You must take into account all of your debt, including mortgages, loans, priority debts, and more.
- Disposable Income: You must determine your disposable income by looking at your monthly income minus your living expenses. If you have a higher disposable income, you'll typically have a higher monthly payment.
- Length of Time: If your monthly wage is currently less than the average median of the state’s applicable set income standard, then your plan only needs to be for three years. If your monthly wage is currently more than this average median, then you can repay your debts over a period of five years. The great news is that you will not need to make a plan over five years, chaining you to a long-term commitment.
Discharge RequirementsOnce you are set on paying your debts on your organized payment plan, you will eventually be able to have a discharge. In order to be eligible for this discharge, you need to make sure that you have completely paid off any prior obligations towards domestic support and that you have not been granted discharge recently (within four years for Chapters 7, 11, and 12, and within two years for Chapter 13). You will also need to gain approval showing that you have successfully completed a financial management course.
Advantages of Chapter 13Unlike Chapter 7, which requires individuals to actually liquidate their valuable property and possessions, Chapter 13 has the advantage of giving you many more opportunities for independence.
Just some of the benefits of Chapter 13 include:
- Stop foreclosure: The opportunity to rescue your home by immediately halting foreclosure demands from mortgage companies
- Repay debts over time: The ability to reschedule all of your secured debts over a longer period of time during the remainder of your plan, which often succeeds in lowering the amounts of the payments owed themselves
- Halt creditor harassment: The absence of creditors making direct and often grievous or even hostile contact; since you will have a trustee distributing your payments like a consolidation loan to your creditors, you will never have to directly interact with creditors again
Receive Reliable Legal Counsel from a Seasoned AttorneyThere are many complexities involved in filing for Chapter 13, not only restrictions, but even opportunities to apply for special allowances, such as hardship discharges. However, it can be very difficult to navigate through the application on your own. You should consult our experienced Chapter 13 bankruptcy attorneys in Los Angeles for dependable legal counsel before you begin the filing process.
Contact us today at 888-332-8362 so that The Turoci Bankruptcy Firm can safely guide you through the entire application process.