Chapter 13 bankruptcy is the only reorganization chapter available to most individuals. Chapter 11 bankruptcy is generally too expensive and cumbersome for individuals, and the creditors have to vote on the reorganized payment plan. In a Chapter 13 bankruptcy, however, the creditors don’t get to vote on the repayment plan: The Chapter 13 is forced on them unless they have a valid objection.
In a Chapter 13 bankruptcy, you are reallocating your cash flow in a way that leaves you debt-free at the end, and that is also fair to your creditors. You pay back creditors over the course of three to five years through monthly payments. Crafting this Chapter 13 payment plan is a complex process, one that requires an experienced bankruptcy lawyer to help you navigate each step.
Call (562) 436-5456 today to learn more about your debt relief options in a FREE consultation.
Your monthly payment is determined by what you can afford to repay after paying your reasonable and necessary expenses. For debtors under the median income, this is a simple budget you put together based on your income versus the allowable expenses. For families over the median income, the budget is a complex calculation that uses the IRS Offer in Compromise standards combined with your actual expenses for secured debt, such as your mortgage and car.
Before signing off on the Chapter 13 plan, a judge will hear from your attorney and the Chapter 13 Trustee at a “Confirmation Hearing.” When all has been resolved the judge will state the basic terms of your plan into the record. Then you just make the monthly payment. At the end of the plan term, you will receive a debt discharge just like in Chapter 7 bankruptcy.
Unlike a Chapter 7 case, the Chapter 13 bankruptcy does not bring your assets into potential liquidation as long as you pay back more than you would in a Chapter 7, even if it is only by one dollar more.
*Your house may have become worth less than the loan amount owed on the 1st mortgage. In that case, the 2nd mortgage has no equity and is just like a credit card. Upon completing your Chapter 13 plan, the mortgage cannot be enforced. This means much more practical debt relief.
Discover if Chapter 13 bankruptcy is right for you: Call (562) 436-5456 or email our Long Beach bankruptcy firm today!
I would HIGHLY recommend you contact LeverLaw for filing your Bankrupty proceedings! I was referred to LeverLaw firm after an unfortunate experience with another Bankrupty attorney. I then contacted LeverLaw for a free consultation. Upon meeting with Mr. Lever, I felt confident enough in knowing that I'd made the right choice in retaining him to initiate my Chapter 13 Bankruptcy.
View More Testimonials
For many people, a home is so much more than a house, it holds fond family memories, and offers you a safe haven at the end of a long day. So, when even considering bankruptcy, most people’s primary concern is whether or not ...
Most potential clients that call me wonder if they can keep their car in bankruptcy . Everyone is fearful that they will lose their wheels, in addition to the other fears contemplating bankruptcy can bring. The good news is ...
25+ Years of Legal Experience 
100% Focus on Bankruptcy Cases 
Financial Planner Helping You 
Internet Appointments Offered 
Reasonable Fees & Free Consults