Chapter 13 Bankruptcy - Los Angeles County
There are many reasons for choosing a Chapter 13 bankruptcy as a means to obtain financial relief and a chance to get a fresh start. While Chapter 13 bankruptcy isn't for everyone, because of the revisions to bankruptcy law in recent years, many individuals may find it easier to qualify for a Chapter 13 repayment plan, versus a Chapter 7 liquidation plan. Additionally, there are benefits to a Chapter 13 repayment plan that are not available in a Chapter 7 bankruptcy filing. If you are thinking about filing for Chapter 13 bankruptcy in Los Angeles County, there are several issues to consider:
· Income - in order to file for Chapter 13 bankruptcy in Los Angeles County, you must have a steady source of income to repay your debts. This can be in the form of regular employment, or payments that you receive consistently, such as retirement earnings.
· Types of Debt - if you have a lot of debts that cannot be discharged via a Chapter 7 bankruptcy, Chapter 13 bankruptcy may be a better option. Because Chapter 13 repayment plans allow you to catch up on debts that cannot be discharged, you can avoid paying additional interest and penalties while you work to get back on track financially.
· Control of Property - filing for a Chapter 13 bankruptcy in Los Angeles County will place your estate into the hands of a bankruptcy trustee. However, unlike Chapter 7 bankruptcy, your assets will not be sold. Instead, the bankruptcy trustee is in charge of making sure that you make the payments outlined in your repayment plan on time, consistently, throughout the life of the plan.
· Discipline - following through on a Chapter 13 repayment plan takes discipline. You will be living according to a budget for the duration of the plan, and many financial decisions will have to be approved by the bankruptcy trustee, if they involve your taking on more debt. You must be willing to commit to the repayment plan and see the bankruptcy process through in order to reap the full benefits that Chapter 13 bankruptcy has to offer.
Filing for bankruptcy is a serious matter, and it's important to be fully informed about the pros and cons of your decision. By speaking with a reputable Los Angeles County Bankruptcy Attorney, you will be better prepared to understand the financial benefits of Chapter 13 bankruptcy, and whether or not it can help you in your particular situation. Our firm offers a free initial case evaluation, to help you get the information you need to make the best decision possible about your current situation. Contact us today, and let one of our reputable Los Angeles County Bankruptcy Law experts speak with you about your unique circumstances, and the benefits of Chapter 13 bankruptcy.