If you are facing insurmountable debt and cannot pay your creditors, filing for Chapter 13 Bankruptcy could offer you some relief. This type of bankruptcy allows individuals to develop a manageable repayment plan and keep most of their assets.
Bankruptcy can be a stressful and challenging process, but a Whittier Chapter 13 Bankruptcy lawyer can assist you throughout your case, working to protect your rights and help you regain control of your financial situation. Contact The Law Office of Steven Ibarra today to schedule a consultation with a seasoned bankruptcy attorney.
What Is Chapter 13 Bankruptcy?
When planning to file for bankruptcy, our bankruptcy lawyer in Whittier will help you determine which type of bankruptcy best fits your financial situation. Chapter 13 Bankruptcy involves a repayment plan wherein you will continue repaying your debts to creditors, either partially or in full, but most likely only partially.
If you choose Chapter 13 Bankruptcy, you will have to repay your debt in either 36 or 60 months. If your gross income is below the average income for your state, a 36-month payment plan is proposed to the court. Meanwhile, if your gross income is above average for your state, your lawyer will propose a 60-month payment plan. During your initial consultation, your attorney will further explain how Chapter 13 Bankruptcy works and the potential structure of your payment plan.
How to File for Chapter 13 Bankruptcy in Whittier
Chapter 13 Bankruptcy begins with petitioning the bankruptcy court. To do this, you will need to gather copies of your financial records and file them along with a proposed repayment plan.
Once you file your bankruptcy petition in the United States Bankruptcy Court for the Central District of California, your case officially begins, and most debt-collection actions freeze. The court will review your repayment plan, approve or amend it, and appoint a trustee to oversee the repayment process. You can then start making payments and work toward being debt-free.
Our Whittier lawyer can assist you with everything you need to do to file your Chapter 13 Bankruptcy claim and represent you throughout your case. Our legal team helps by:
- Reviewing your income, assets, and expenses
- Helping you negotiate with your creditors
- Helping you create a proposed plan for repayment that you believe you can manage
- Filing your case in bankruptcy court and representing you during court proceedings
- Handling any post-bankruptcy management, such as payment plan modification, if necessary
Throughout your case, our goal is to help you protect your assets and get back on your feet.
How Does a Chapter 13 Payment Plan Work?
A Chapter 13 Bankruptcy plan should propose a certain amount that you will have to pay back to creditors. This amount can range from 0 percent to 100 percent of your debt. Moreover, this payment plan should include the time period over which you will pay back the amount. After filing your bankruptcy case, the first payment is due in 30 days. The trustee appointed to your bankruptcy case will then distribute payments to your creditors.
Our Whittier Chapter 13 Bankruptcy attorney could help you devise and advocate for the best payment plan for your situation. Our focus is always on the client, and we strive to seek the best outcome for you.
What Are The Advantages of Filing for Chapter 13 Bankruptcy?
There are advantages to filing a Chapter 13 Bankruptcy vs. a Chapter 7, which is another common type of bankruptcy available to individuals.
Chapter 7 Bankruptcy requires you to liquidate or sell most of your assets for cash to pay your creditors, while Chapter 13 Bankruptcy does not. Therefore, the primary advantage of filing for Chapter 13 is that it usually allows you to keep your property, including your home and vehicle.
However, Chapter 13 Bankruptcies take longer and are more complex. With help from our Whittier Chapter 13 attorney, filing could give you the best chance at preserving your house and property.
Get in Touch With a Whittier Chapter 13 Bankruptcy Lawyer
For more information on bankruptcy laws, turn to the Law Offices of Steven Ibarra. Our legal team is determined to help you understand your financial rights and make the right decisions when filing for bankruptcy.
Our Whittier Chapter 13 Bankruptcy lawyer proudly serves residents in Whittier, CA, and the surrounding areas. We are a locally owned and operated law firm that has been fighting for clients since 2008. To schedule a free consultation, contact our team today. We will reach out to you as quickly as possible.
