Los Angeles - Understanding Chapter 13 Bankruptcy

Chapter 13 repayment plans are as unique as the individuals who file for Chapter 13 bankruptcy, and no two individuals' circumstances are exactly alike. While some individuals will repay a substantial portion of the debts they owe, others may repay only half, or even less of their unsecured debt - it all depends upon the financial circumstances involved in each case. Understanding how Chapter 13 bankruptcy works in Los Angeles County can be difficult in some instances, but with a reputable Los Angeles County Bankruptcy Lawyer representing your case, you can feel confident that you are taking advantage of every benefit that the law provides for those seeking the protection and financial freedom of bankruptcy.

While each Chapter 13 repayment plan is tailored to the individual circumstances of the filer, there are certain qualifications that must be met by everyone who wants to file for Chapter 13 bankruptcy protection. Typically speaking, if you do not qualify for a Chapter 7 liquidation bankruptcy, you will be able to file a Chapter 13 bankruptcy if you meet the following conditions:

·         You have less than $1,010,630 in secured debt - this type of debt pertains to loans for such items as a car, home, or other valuable property

·         You have less than $336,900 in unsecured debt - this is debt that is not secured by property or possessions, such as credit card debt, personal loans, or other types of loans with no collateral required

·         You are steadily employed, and will be able to repay the debts as listed in your repayment plan - because Chapter 13 bankruptcy requires adherence to a strict budget, you must have a steady, regular source of income that will allow you to meet your financial obligations.  

If you meet these three criteria, you may be an excellent candidate for Chapter 13 bankruptcy in Los Angeles County. While you will be required to complete financial counseling and debt management classes just as in Chapter 7 bankruptcy, in a Chapter 13 bankruptcy these classes can be an excellent means to create your repayment plan for the court with the assistance of a qualified professional. This will help you take into account all of your necessary expenses, which is highly important, as you will be expected to live by the budget you create for the bankruptcy filing for the duration of your repayment plan. Additionally, you will be expected to begin making payments according to the repayment plan within 30 days, even if your case is still in process.

Because of all the requirements involved in filing for Los Angeles County Chapter 13 bankruptcy, it is important to seek the legal advice and representation of a professional. Our firm has represented Chapter 13 bankruptcy clients throughout Los Angeles County, and we are committed to helping every client obtain financial freedom and peace of mind. Chapter 13 bankruptcy can be the first step on the road to financial recovery, but only if you fully understand the laws, and how they pertain to your particular circumstances. Contact our professional Los Angeles County Bankruptcy Law Firm today and get a free initial case evaluation that will help you make the right choice when it comes to filing for Chapter 13 bankruptcy and getting the financial relief you deserve.