Chapter 13 bankruptcy is an excellent option for individuals who do not qualify for a Chapter 7 bankruptcy. Chapter 13 is a way to reorganize your debts. With the approval of the court, you will come up with a plan to pay back your debts over the next 36 to 60 months. In order for the court to agree to your payment plan, it will have to believe that you can make the plan work and that you have proposed the plan in good faith.
Like Chapter 7 bankruptcy, once you file for Chapter 13 bankruptcy all creditors’ actions must cease and foreclosure will be stopped immediately. Additionally, most credit bureaus take a Chapter 13 bankruptcy off of your record in seven years.
Contact us to get help from a Beverly Hills bankruptcy lawyer at Pillar Law Group.
Benefits of filing for Chapter 13 bankruptcy include:
To file for Chapter 13 bankruptcy, you must have a regular income and on the date you file, you must owe less than $383,175 in unsecured debt and $1,149,525 in secured debts. Prior to filing, you will have to complete a credit counseling course.
It is imperative that you retain skilled legal services, as completing Chapter 13 bankruptcy includes complicated steps such as filing a schedule of your assets and liabilities, filing a schedule of your current income and expenditures, filing a schedule of executory contracts, filing a statement of your financial affairs, filing proof that you’ve gone to credit counseling, filing a copy of a debt repayment plan developed through credit counseling, and more. When you turn to our Beverly Hills bankruptcy attorneys for assistance, we can guide you through the entire Chapter 13 bankruptcy process—from filing paperwork to developing your repayment plan.