You know that you can resolve your debts responsibly, but you need assistance to make it happen. A Chapter 13 bankruptcy filing, also known as a wage earner’s plan, may provide the ideal solution. By letting you repay your debts over a period of three to five years, this form of bankruptcy helps you gain relief without having to sacrifice the assets you’ve worked so hard to acquire.
The Benefits of Chapter 13
One of most appealing aspects of Chapter 13 protection is that it can help Californian homeowners avoid having to go through foreclosure. Although you’ll still need to pay the mortgage payments that you owe during your Chapter 13 plan, this critical form of relief has the power to minimize the negative impacts of delinquencies.
Chapter 13 also appeals to those in search of relief from overbearing secured debts. With the exception of primary residence mortgages, this form of bankruptcy can potentially lower your payments by letting you extend your repayment period. If you entered a debt with help from a cosigner, such as a relative, Chapter 13 could provide them with protection as well.
For many, Chapter 13 bankruptcy’s biggest strength is that it lets you repay your debts through a trustee. Like consolidation loans, you can avoid dealing with creditors during your protection period.
Filing: Who Can Receive Chapter 13 Protection?
Chapter 13 is available to any individual who:
- Has unsecured debts worth less than $394,725
- Has secured debts worth less than $1,184,200
- Hasn’t been denied bankruptcy for failing to comply with court orders within the previous 180 days and has received approved credit counseling in that period
Provided that you meet these requirements, you’ll need to file a petition with the appropriate bankruptcy court along with various information about your debts, liabilities, income, expenses, contracts and financial affairs. Once you’ve filed, you gain protection from creditors who want to collect your debts, and you’ll need to appear before a trustee and your creditors’ representatives to satisfy their questions about your filing.
Legal Aid: Helping You Fulfill Your Other Requirements
Unlike some kinds of bankruptcy filers, Chapter 13 petitioners also need to submit repayment plans within 14 days of their initial request. This plan describes the manner in which you wish to repay your debts, and it’s subject to the approval of the court. Creditors can also object to a plan, which may delay your ability to secure protection.
How can you heighten your chances of being granted Chapter 13 bankruptcy? Filing carefully is critical to your success, and at Elkington Shepherd LLP, it’s our business to prevent you from making missteps. Simple clerical mistakes and omissions can set your case back and increase your legal costs, so we work diligently to ensure that you follow the procedures your protection depends on. Our team provides:
- Free initial consultation
- Paperwork assistance and completion
- No-cost credit reports
- Direct case attention from lawyers instead of paralegals or assistants
Don’t let a lack of knowledge derail your Chapter 13 filing. Call (510) 465-0404 to talk to our professional, knowledgeable advisors today.