There are two main types of bankruptcy available to consumers, Chapter 7 and Chapter 13. If you currently feel like you are drowning in debt, have a steady income, and can make payments, Chapter 13 may be the right option for you. Chapter 13 allows you to keep your property and assets and eliminate certain debts by reorganizing your debt. Speak with a bankruptcy attorney from Nass Law Firm today!
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Unlike Chapter 7 bankruptcy, a Chapter 13 would allow you to repay your debts gradually, rather than having most of your assets liquidated immediately. You would have to propose a 3 to a 5-year repayment plan to your creditors offering to pay off all or some of the debts from your future income. If you can adhere to the payment agreement, the remaining debt will be released at the end of the plan.
The amount you would owe depends on a couple of factors, such as your disposable income. This number is usually determined using the California means test. The creditors must also receive at least as much under this plan as they would have if you had filed for Chapter 7 bankruptcy.
Chapter 13 may be right for you if you meet the following criteria:
Most choices come with their pros and cons. For Chapter 13 bankruptcy, one of its biggest appeals is the ability to keep property such as your home and car. Getting to keep your precious possessions, some of which seem priceless to you, is a great incentive for choosing this option. Your debts, while not canceled, can also be reduced under Chapter 13, as you intend on paying as much as you can back over the next 3 to 5 years. In addition, you have immediate protection from the creditor’s collection efforts and wage garnishment. Lastly, you can file Chapter 13 at any time and as many times as you need over the course of your lifetime.
For the next 3 to 5 years after filing for Chapter 13 bankruptcy, most of your extra income will go to paying off your debts, meaning you will have less to work with for extraneous or fun expenses. You will also be involved in bankruptcy court for the duration of the plan, meaning your legal fees may be larger. Stockbrokers and commodity brokers are also barred from filing a Chapter 13 bankruptcy petition.
Are you looking for a Beverly Hills attorney to help guide you through the Chapter 13 process? Our legal team at Nass Law Firm has more than 65 years of combined legal experience guiding and representing individuals like yourself who are looking for a fresh financial start. You can rely on our knowledgeable and experienced legal team to help determine whether Chapter 13 is the right chapter of bankruptcy for you. Feeling like you can never get out from under your debt is overwhelming and stressful. Filing for bankruptcy can allow you to have the fresh start you need to turn your life around.
If you choose to hire our firm, trust you’ll receive the personalized attention you deserve. To learn more about how we can help, schedule a consultation by calling us today at 310.935.0663.